When it comes to the prospects of economic recovery in America, consumers are more skeptical than economists.

A recent survey from AXA Equitable Life Insurance Company shows that 24 percent of consumers believe the economy will continue to be volatile, with no clear pattern of improvement—twice the percentage of economists (12 percent) who believe the same. In addition, 16 percent of economists and 11 percent of consumers believe that despite signs of recovery, America is likely headed back into a recession.

Overall, consumers are much more pessimistic than economists in their outlook on specific economic indicators over the next year:

• 83 percent of consumers believe health care costs will rise, compared with 52 percent of economists.
• 73 percent of consumers think taxes will increase; 55 percent of economists agree.
• 34 percent of consumers believe the unemployment rate will rise, but only 6 percent of economists concur.

While the majority of consumers may not believe another recession is just around the corner, most are timid about investing in the stock market. The AXA survey also showed that only 19 percent are confident in their ability to invest in equities, even though 60 percent believe equities are necessary to achieve retirement goals. A greater percentage of economists (69 percent) think investing in equities is important to retirement planning, but 80 percent of these professionals believe Americans are uncertain in their ability to purchase equities.

“The fact that historically middle-of-the-pack concerns, such as fear of inflation and investments losing value, are now top of mind for consumers suggests that they are increasingly aware about their retirement planning,” said Christopher M. “Kip” Condron, chairman and CEO of AXA Equitable. “And the large gaps between Americans and economists on specific financial indicators shows there is a disconnect between how the spending public feels and those that study the behavior of the economy.”

The AXA survey showed other areas in which consumers and economists don’t necessarily agree or in which their perceptions differ. For instance, 85 percent of consumers believe financial products that protect principal of investments and provide income that increases with inflation are important; 67 percent of economists believe that they are important. Economists estimate that 25 percent of consumers are supporting relatives due to the market downturn, while only 16 percent of consumers say they have begun to do so. And while 24 percent of economists believe consumers have switched advisors, in fact, only 11 percent of consumers stopped using or switched financial professionals.

“Consumers are not abandoning their advisor relationships,” said Andrew McMahon, senior executive vice president for AXA Equitable and president of its financial protection and wealth management business. “In fact, advisory relationships are even more important to help bolster consumer confidence in being able to invest in equities wisely.”

Investor-advisor relationships could become increasingly important as Americans change their retirement plans. The AXA survey showed that 42 percent of consumers plan to delay retirement, on average, by six years, from age 62 to age 68. In addition, 27 percent plan to go back to work after retiring, and 17 percent have already gone back to work, up from 9 percent of those polled in February 2009.