The document summarizes the results of a survey of 27,500 people about their financial behaviors and concerns. Some key findings include:
- Most Americans are underfunded for retirement, with pre-retirees only having enough savings to last 3 years in retirement.
- A group called "Highly Effective Investors" take actions like regularly reviewing finances and seeking advice that lead to better financial outcomes.
- Many Americans are worried they cannot retire comfortably due to concerns like health care costs and lack of retirement savings.
- Most Americans have too much of their savings in low-yield cash accounts rather than higher-return investments.
The Aviva Real Retirement Report - Spring 2014Aviva plc
Aviva's Spring 2014 Real Retirement Report explores over-55s' views on retirement and what role their family plays in their plans. Findings from the consumer research shows that for over-55s retirement is a period of pursuing personal interests, hobbies and travel. However, family is important, and they particularly want to spend more time with family members. But many over-55s are over-looking their spouse and their family when they come to plan their retirement finances, and consider their finances a personal matter. This reluctance to involve the family also affects the number of people preparing a will.
Making your money last in retirement - Aviva's longevity reportAviva plc
In our making your money last in retirement special report we compare and consider consumer attitudes to the facts about longevity, and make some clear recommendations about how the government and the industry must respond.
PICTURE IT your moment of retirement. You’ve worked hard to get here. Now it’s time to
do all of the things you’ve been dreaming about for the last 40 years. Whatever it is you want
to do, you’re going to need to make sure you have a paycheck to do it.
During your working years, your focus was saving for retirement. But now your focus shifts to
creating income in retirement. That means creating a paycheck from your retirement savings.
When planning how much income you’ll need for your retirement paycheck, it’s important to
consider the impact outside factors can have on how long your money will last.
Aviva's biannual UK Family Finances report (December 2014) reveals that:
> UK parents of 0-5s juggle earnings with childcare expenses
> 1 in 10 families using childcare for 0-5s say lower earner takes home nothing after childcare / work costs are paid
> Lower earner typically brings home just £243 after childcare / work costs are paid
> One in three families using childcare for 0-5s turn to grandparents
> Working parents are being hamstrung by childcare costs, with thousands effectively working for nothing, Aviva can reveal.
The company’s Winter 2014 Family Finances Report also reveals that one in 10 families paying childcare costs for youngsters aged 0-5, effectively see one earner bring home nothing from his or her job after childcare and work costs are taken into account.
Similarly one in four families in this position has one parent who brings home less than £100 a month after costs.
Find out more in the full report.
Infographics and quotagraphics to accompany this report are available on Flickr at https://www.flickr.com/photos/avivaplc/
#FamilyFinances
Retirement Savings Challenges for WomenBobby Cherry
When it comes to saving for retirement and planning for retirement income, women face a number of unique challenges, which we’ll be discussing in more detail.
First of all, women generally live longer than men, which means they may need to plan for more years in retirement.
Because of their longer life expectancies, women should also consider that they may spend some of their retirement years living on their own.
Women often interrupt their careers to care for children and aging parents.
Because of these career interruptions, women may spend less time in the workforce and earn less money than men in the same age group, which could result in saving less for retirement and having a lower Social Security benefit.
It’s important to recognize these challenges and plan accordingly. Let’s look at each challenge a little more closely.
The Aviva Real Retirement Report - Spring 2014Aviva plc
Aviva's Spring 2014 Real Retirement Report explores over-55s' views on retirement and what role their family plays in their plans. Findings from the consumer research shows that for over-55s retirement is a period of pursuing personal interests, hobbies and travel. However, family is important, and they particularly want to spend more time with family members. But many over-55s are over-looking their spouse and their family when they come to plan their retirement finances, and consider their finances a personal matter. This reluctance to involve the family also affects the number of people preparing a will.
Making your money last in retirement - Aviva's longevity reportAviva plc
In our making your money last in retirement special report we compare and consider consumer attitudes to the facts about longevity, and make some clear recommendations about how the government and the industry must respond.
PICTURE IT your moment of retirement. You’ve worked hard to get here. Now it’s time to
do all of the things you’ve been dreaming about for the last 40 years. Whatever it is you want
to do, you’re going to need to make sure you have a paycheck to do it.
During your working years, your focus was saving for retirement. But now your focus shifts to
creating income in retirement. That means creating a paycheck from your retirement savings.
When planning how much income you’ll need for your retirement paycheck, it’s important to
consider the impact outside factors can have on how long your money will last.
Aviva's biannual UK Family Finances report (December 2014) reveals that:
> UK parents of 0-5s juggle earnings with childcare expenses
> 1 in 10 families using childcare for 0-5s say lower earner takes home nothing after childcare / work costs are paid
> Lower earner typically brings home just £243 after childcare / work costs are paid
> One in three families using childcare for 0-5s turn to grandparents
> Working parents are being hamstrung by childcare costs, with thousands effectively working for nothing, Aviva can reveal.
The company’s Winter 2014 Family Finances Report also reveals that one in 10 families paying childcare costs for youngsters aged 0-5, effectively see one earner bring home nothing from his or her job after childcare and work costs are taken into account.
Similarly one in four families in this position has one parent who brings home less than £100 a month after costs.
Find out more in the full report.
Infographics and quotagraphics to accompany this report are available on Flickr at https://www.flickr.com/photos/avivaplc/
#FamilyFinances
Retirement Savings Challenges for WomenBobby Cherry
When it comes to saving for retirement and planning for retirement income, women face a number of unique challenges, which we’ll be discussing in more detail.
First of all, women generally live longer than men, which means they may need to plan for more years in retirement.
Because of their longer life expectancies, women should also consider that they may spend some of their retirement years living on their own.
Women often interrupt their careers to care for children and aging parents.
Because of these career interruptions, women may spend less time in the workforce and earn less money than men in the same age group, which could result in saving less for retirement and having a lower Social Security benefit.
It’s important to recognize these challenges and plan accordingly. Let’s look at each challenge a little more closely.
American workers are earning $130 less per paycheck due to the 2013 payroll tax increase. In our 2013 Workonomix survey, we took a look how and where Americans are cutting back in their spending.
Nuricumbo + Partners is specialized on subjects such as financial due diligence for M&A, special audits, independent process assessments, debt/equity solutions, on-demand financial talent, anti-corruption initiatives, enterprise risk management, and corporate governance. We have become trusted business advisors for companies of all sizes, providing direct support to CEOs and CFOs in special or confidential projects.
http://ekinsurance.com/financial/retirement/
If you are near retirement or have retired, listed below are several common mistakes that occur in the arena of financial planning for retirement that you can plan now to avoid.
6 Retirement Questions Government Employees Should Be AskingBravias Financial
There are emotions and worries tied into retirement. When it comes to government workers, they have additional challenges to consider when evaluating their benefits and options. As financial professionals who specialize in helping government employees transition from work to
retirement, Bravias Financial understands that you may have questions about when and how you can retire. This special
report addresses some common questions and presents some strategies to help you prepare for a more
comfortable retirement.
Making your money last in retirement - Aviva's longevity reportAviva plc
In our making your money last in retirement special report we compare and consider consumer attitudes to the facts about longevity, and make some clear recommendations about how the government and the industry must respond.
Employee Health & Financial Wellness approachWarren Handsor
Manulife in 2014 in cooperation with Ipsos Reid Research Manulife's objective to assist employers of all sizes to gain greater insight into the connection between employee health, wealth and their company's success.
Actuary Steve Vernon, retirement expert, Fellow of the Society of Actuaries and president of Rest-of-Life Communications, provides his recommendations regarding the current state of retirement and what individuals, employers and plan sponsors should do to prepare for retirement. For more information, visit www.restoflife.com
American workers are earning $130 less per paycheck due to the 2013 payroll tax increase. In our 2013 Workonomix survey, we took a look how and where Americans are cutting back in their spending.
Nuricumbo + Partners is specialized on subjects such as financial due diligence for M&A, special audits, independent process assessments, debt/equity solutions, on-demand financial talent, anti-corruption initiatives, enterprise risk management, and corporate governance. We have become trusted business advisors for companies of all sizes, providing direct support to CEOs and CFOs in special or confidential projects.
http://ekinsurance.com/financial/retirement/
If you are near retirement or have retired, listed below are several common mistakes that occur in the arena of financial planning for retirement that you can plan now to avoid.
6 Retirement Questions Government Employees Should Be AskingBravias Financial
There are emotions and worries tied into retirement. When it comes to government workers, they have additional challenges to consider when evaluating their benefits and options. As financial professionals who specialize in helping government employees transition from work to
retirement, Bravias Financial understands that you may have questions about when and how you can retire. This special
report addresses some common questions and presents some strategies to help you prepare for a more
comfortable retirement.
Making your money last in retirement - Aviva's longevity reportAviva plc
In our making your money last in retirement special report we compare and consider consumer attitudes to the facts about longevity, and make some clear recommendations about how the government and the industry must respond.
Employee Health & Financial Wellness approachWarren Handsor
Manulife in 2014 in cooperation with Ipsos Reid Research Manulife's objective to assist employers of all sizes to gain greater insight into the connection between employee health, wealth and their company's success.
Actuary Steve Vernon, retirement expert, Fellow of the Society of Actuaries and president of Rest-of-Life Communications, provides his recommendations regarding the current state of retirement and what individuals, employers and plan sponsors should do to prepare for retirement. For more information, visit www.restoflife.com
New "flip book" eMagazine is available for you right here. The value of insurance is front and center in this new publication which features an easy to use flip book feature. VantagePoint magazine is an independently produced quarterly publication that offers valuable information for mature adults (55+).
When it comes to planning for retirement, the earlier you start, the more potential your money has to grow. Retirement planning is not simply about paying regularly into your pension and forgetting about it. Instead, it is essential to review your progress against your retirement goals and take account of changes that may affect your plans. For more information visit https://www.tudorfranklin.co.uk
Investing mistakes to avoid before retirementAlpesh Patel
PRESENTATION: Investing Mistakes To Avoid Before Retirement
In this presentation I cover:
* Common Investment Mistakes To Avoid
#1. Home Country Bias
#2. Sequence of Returns Risk
#3. Overconfidence in the Current Market
#4. Defining an Accurate Retirement Budget
#5. Not Accounting For Taxes
Read more https://www.tradermind.com/investing-mistakes-to-avoid-before-retirement/
Learn more about my mission at www.campaignforamillion.com
This report lets you see for yourself what others
think and feel about their retirement. I hope it will
also encourage some readers to take more control
of their own financial future. The ability to shape your
retirement is in your own hands with the power
of planning.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Normal Labour/ Stages of Labour/ Mechanism of LabourWasim Ak
Normal labor is also termed spontaneous labor, defined as the natural physiological process through which the fetus, placenta, and membranes are expelled from the uterus through the birth canal at term (37 to 42 weeks
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
2. [ 2 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
What’s on the minds of investors? BlackRock is keenly interested
in what investors across the globe are thinking, how it is influencing
financial behavior today and what it can tell us about the future.
This report summarizes the results from our 2nd annual BlackRock
Global Investor Pulse survey of 27,500 people, focusing on the U.S.
findings where we interviewed a nationally representative sample
of 4,000 Americans, ages 25 to 74.
What investorsare thinking
3. W h at In v e s t o r s a r e T hink in g [ 3 ]
What We Learned from You
Although the global economic recovery is now well underway, Americans aren’t
seeing the personal benefit from the improving landscape. As a result, they remain
in a holding pattern when it comes to their finances. Our research paints a picture of
Americans who are financially fatigued and lacking the confidence to move forward.
And their greatest personal financial concern is retirement. All Americans want a
comfortable retirement with sufficient retirement income to last them throughout
their retirement years. But wanting and saving are two different things, and there’s
a significant expectation gap.
When looking at what American pre-retirees have saved for retirement compared
to the annual retirement income they say they want, they only have enough to
fully fund less than three years of retirement. Looking specifically at affluent
pre-retirees, they only have enough to last less than seven years for a retirement
that could last 20–30 years.
But there is a group of Americans who is getting it right. These Highly Effective
Investors are twice as likely to be confident they are making the right savings and
investing decisions, twice as likely to say they enjoy managing their investments,
and have more than 2.5 times the retirement savings of other Americans. Highly
Effective Investors take specific actions to help achieve their financial goals.
Key Findings
} Retirement Underfunded
Given Future Income
Expectations
} Highly Effective Investors
Do the Right Things
} Fundamental Financial
Worries Exist for Many
} Overallocation to Cash
a Problem for All
7 Key Habits of
Highly Effective Investors
1 Regularly review finances
2 Spend time to get informed
3 Seek financial advice
4 Manage debt
5 Prioritize saving for retirement
6 Diversify portfolios
7 Plan for big moments
4. [ 4 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
1
Retirement Underfunded Given
Future Income Expectations
Americans identify saving for retirement as their number two
priority, right behind the more general “saving money.” For affluent
Americans (those with more than $250,000 in investable assets),
saving for retirement is their most important priority.
However, only 59% of all Americans have any dedicated retirement savings either
through an employer-sponsored plan or individual retirement savings, a finding
that is surprisingly consistent across generations.
Among all Americans who have started saving for retirement (either on their own
or through employer-sponsored plans), their current balances are very modest,
especially given their expectations for retirement income. Affluent Americans
stand out in their commitment to saving for retirement, with 91% already on their
way. However, that doesn’t necessarily translate to retirement readiness.
Not All Americans Are Retirement Savers
Have you started to save specifically for retirement through a workplace plan or on your own?
AFFLUENT AMERICANS
$250K+ investable assets
MILLENNIALS
AGES 25–36
GEN X
AGES 37–49
BABY BOOMERS
AGES 50–68
59%
91%
60%
57%
59%
ALL AMERICANS
5. W h at In v e s t o r s a r e T hink in g [ 5 ]
the savings/future retirement
income disconnect
Among pre-retirees (ages 55–64), there is a huge disconnect with savings falling
far short of expectations. Pre-retirees’ savings would be exhausted in less than
three years in retirement; affluent pre-retirees would only be able to fund less than
seven years. Looking at the disconnect from another dimension, translating current
savings to future annual retirement income shows a significant gap as well.
These calculations are based on the CoRI™ Retirement Indexes by BlackRock,
which can help estimate how much an investor would need to have saved today
to generate each dollar of annual income in retirement. From our study, we can
see how Americans are facing a serious income gap.
Pre-retirees still have time to close the gap including setting (and sticking with)
additional annual savings targets, factoring in any other sources of income in
retirement like Social Security, which in 2013 provided an average retiree with
approximately $15,000 in annual benefits, working with an advisor to invest
purposefully, and potentially delaying retirement.
The Retirement Income Gap
Sources: Retirement savings and desired income from Global Investor Pulse survey (July/August 2014) in median dollars for
Americans ages 55–64. Estimated annual retirement income is based on the CoRI 2024 Retirement Index for a pre-retired 55
year old. CoRI estimates are as of 10/10/14, and are subject to change over time. Retirement is assumed to begin at age 65.
$
96,200 Total Retirement Savings
$
43,700 desired Annual Retirement Income
income GAPestimated INCOME
$
6,400 $
37,300ALL PRE-RETIRED
AGES 55–64
$
453,900 Total Retirement Savings
$
65,700 desired Annual Retirement Income
AFFLUENT PRE-RETIRED
AGES 55–64
estimated INCOME
$
30,100
$
43,700
DESIRED INCOME
$
65,700
DESIRED INCOME
$
35,600
income GAP
6. [ 6 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
What Makes It So Hard to Save?
Not earning enough, high living costs and unplanned expenses are key impediments
to saving for retirement. All of these concerns are felt more squarely by Americans
compared to the global average. Not surprisingly, affluent Americans less often
have difficulty balancing both the cost of living and saving for retirement.
Factors Limiting Americans’ Ability to Save for Retirement
Which, if any, of the following are making it hard for you to save for retirement?
I don’t earn enough
The cost of living is too high
I have unplanned expenses
I’m paying off a mortgage
47%
21%
46%
28%
33%
28%
24%
30%
ALL AMERICANS AFFLUENT AMERICANSVS
I have high credit card debt 23%
17%
Deep-Seated Concerns about Retirement Lifestyle Exist
Overall, how concerned are you that you will not be able to live comfortably in retirement?
ALL AMERICANS AFFLUENT AMERICANS
$250K+ investable assets
MILLENNIALS
AGES 25–36
GEN X
AGES 37–49
BABY BOOMERS
AGES 50–68
73%
58% 76% 79%
70%
Given what costs could be by the time we retire, it’s not surprising that 73% of
Americans (58% of affluent Americans) are concerned they will not be able to live
comfortably in their retirement. And more than half of Americans, regardless of
wealth, are specifically concerned about outliving their savings. While Social
Security was never intended to provide for a full retirement, almost two-thirds of
all Americans (including 62% of affluent Americans) say that it will be critical to
their ability to support themselves in retirement.
7. W h at In v e s t o r s a r e T hink in g [ 7 ]
Americans are squeezed by household costs, with 42% of their take-home pay
spent on essential expenses, such as mortgage, rent, utilities and the like.
Compared to the global average, the U.S. percentage is particularly high, leaving
less for everything else and reducing our ability to save and invest.
Americans Spend Far More on Essential Expenses than
the Rest of the World
In a typical month how much of your household’s take-home pay do you typically
spend on mortgages, rent, utilities and other expenses, and how much do you save,
invest and spend beyond these essentials?
DISCRETIONARY
SPENDING
INVESTING/
SAVING
30%
42%
28%
31%
32%
37%
ESSENTIAL
EXPENSES
WORLD
UNITED STATES
Both managing day-to-day expenses and preparing for the future is seen as a
huge challenge for the majority of Americans. Overall, 75% of Americans and 56%
of affluent Americans say it is “hard” to keep up with bills and save for retirement
at the same time. This concern is widespread but more acutely felt by women
and Americans in their middle-years (ages 45–54), those who are at the critical
pre-retirement juncture and should be placing the greatest focus on saving
aggressively for their retirement.
8. [ 8 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
2
Highly Effective Investors
Do the Right Things
Not all Americans are falling short in meeting their desired
financial goals. There is one group of Highly Effective Investors who
are more confident, positive and in control of their financial future.
They have larger retirement savings accumulated and feel they know
how they are going to generate the income they need in retirement.
Who’s Getting it Right?
Often found among the Millennialgeneration (48%).
More likely men(68% vs. 32% women).
More often married/living as a couple(65%)
with children (63%).
Largely employed(84%) and homeowners(81%),
with many owning their home outright.
Less likely to find it hard to keep up with bills and save for retirement
at the same time.
More positive about their financial future and the economy; optimistic
about their ability to achieve their financial goals.
More likely to feel they are taking the right stepsto prepare
for their retirement.
9. W h at In v e s t o r s a r e T hink in g [ 9 ]
The habits of Highly Effective Investors are helping them better manage their
financial priorities. As a result of their financial habits, Highly Effective Investors
are more optimistic about their financial futures, their money and investments, as
well as the economy overall. Learn how other Americans are feeling.
Habits of highly Effective Investors
A defining characteristic of Highly Effective Investors is that they find a way to
juggle life’s immediate costs—bills, tuition, mortgage payments—and still make
an effort to save and invest for long-term goals. Unlike many Americans, they are
focused on planning for future life events rather than letting things just happen.
They are active learners who invest the time to manage their money and build
their financial knowledge. A majority use a financial professional to help them
develop the steps they need to put together a good financial plan and the right
portfolio that will support their goals.
7 Habits of highly Effective Investors
Regularly review finances
They spend more than 3 times as much time
reviewing and monitoring their savings and
investments on a monthly basis.
Spend time to get informed
They are more than twice as likely to regularly
read financial newspapers or magazines and
make the most of financial blogs and
investment websites.
Seek financial advice
They are more than 2.5 times as likely
to use financial professionals as important
partners to help them make the right
investment decisions.
Manage debt
They are more likely to minimize debt.
They are more than twice as likely to
own their home outright, having paid off
their mortgage.
Prioritize saving for retirement
They put the right emphasis on retirement,
having accumulated more than 2.5 times the
retirement savings of other Americans.
Diversify portfolios
They don’t just fall back on cash. They are more
likely to own a broader range of investments;
nearly twice as likely to own stocks and close to
3 times as likely to own bonds.
Plan for big moments
While life happens to all of us—whether it’s
getting married, buying a home, starting a
family, or experiencing an unanticipated
setback—Highly Effective Investors get ahead
of the curve. They are close to twice as likely to
feel strongly about financial planning and take
steps to plan for the financial implications
of recent life events.
10. [ 1 0 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
Although we are well into the U.S. economic recovery, there has
been little improvement in investor sentiment since our 2013 U.S.
Investor Pulse survey. Just over half of Americans (52%) describe
their financial future in positive terms, below the global average
of 56%. We believe this is due, in large part, to the concerns about
retirement previously discussed.
Millennials are substantially more confident (66% positive) about their financial
future than other age groups, especially their parents, with less than half of Baby
Boomers (45%) confident about their financial future.
3
Fundamental Financial
Worries Exist for Many
Americans divided on how they Feel about
Their Financial Future
Overall, which of the following words best describe how you feel about your financial future?
NEGATIVE POSITIVE
52%
45%
41%
56%
Confident, Optimistic, Hopeful,
Certain, Comfortable
Nervous, Depressed, Pessimistic,
Frustrated, Concerned
WORLD
UNITED STATES
11. W h at In v e s t o r s a r e T hink in g [ 1 1 ]
In contrast with how all Americans are feeling about their financial future, affluent
Americans describe their future in much more positive terms (73%) and are more
confident they are making the right financial decisions (76%). While on its face,
given higher savings rates, this isn’t surprising. However, given the disconnect
between their savings and retirement income expectations, their confidence may
be unfounded.
Americans continue to worry about the state of the U.S. economy and the high
cost of living. And despite recent health care reforms, health care costs remain a
significant risk factor for half of Americans.
The Top 5 Risks to Your Financial Future
Which, if any, of the following concerns do you think pose a risk to your financial future?
ALL AMERICANS AFFLUENT AMERICANSVS
HIGH COST OF LIVING
61%
48%
STATE OF THE U.S. ECONOMY
55%
58%
HEALTH CARE COSTS
50%
52%
CHANGES IN INFLATION/RISING PRICING
45%
41%
CHANGES IN SOCIAL SECURITY
43%
36%
12. [ 1 2 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
Four-fifths of Americans (80%) express confidence that their
investment portfolio has the right asset allocation and investments
to help them achieve their financial goals. However, as was true in
our 2013 survey, “cash remains king” with almost two-thirds (63%)
of all savings and investments held in cash—and most of that in
traditional checking and savings accounts (51%). Total cash holdings
remain high (42%) even among affluent Americans.
But here’s the rub: Americans acknowledge they hold too much in cash. By their
own estimates, cash should account for just 29% of their portfolio. Affluent
Americans feel similarly (26%), but they say it’s difficult to make a change.
There is a stark contradiction between Americans’ optimism about their portfolio
and its ability to deliver the growth they need—and their recognition of being
overallocated to cash, which offers little return after inflation and taxes. Financial
professionals can play an important role in helping investors explore better options
for putting their cash to work.
4
Overallocation to Cash
a Problem for All
Why are you holding cash?
Having cash makes
me feel safe38%
I am cautious
with my money37%
I want to be
flexible and keep
my options open
34%
13. W h at In v e s t o r s a r e T hink in g [ 1 3 ]
What’s most surprising about the “cash is king” conundrum is that Americans
intend to increase their investments in cash in the next 12 months. Overall, 55% of
Americans with cash deposits and savings accounts say they will add more money
to their cash accounts, far outstripping intentions to add to other investments.
In contrast to the huge amount of money that Americans are holding in cash, only
18% is invested in stocks, 6% in bonds and 5% in investment real estate.
Yet Americans are optimistic about the U.S. stock market’s future performance.
This should translate into a willingness to move money out of cash, but it does not.
However, only one in four Americans say they are “more interested” in investing in
stocks compared to five years ago, despite steady gains in recent years.
Confidence in U.S. Stock Market is Strong
How do you currently feel about the U.S. stock market’s likely performance
over the next 12 months?
Optimistic
Pessimistic
ALL
AMERICANS
AFFLUENT
AMERICANS
Unsure
48%
31%
21%
69%
24%
7%
Anemic Interest in Investing in Stocks
Compared to 5 years ago, are you more or less interested in investing in stocks?
More interested 27%
39%
ALL AMERICANS AFFLUENT AMERICANSVS
Interest remains
the same 36%
46%
14. [ 1 4 ] U. S . In v e s t o r Pu l s e S u r v e y 2 014
So What Do I Do With My Money?®
Investment Actions to Consider
BlackRock’s U.S. Investor Pulse survey reveals a number of trends.
While Americans have a broad range of positive aspirations for their
future, many are just not actively managing their saving and investing
or building the plans to get themselves on track to achieve their goals.
The Highly Effective Investors are different because they spend the
time to learn, solicit advice when they don’t know, and take action to
leverage opportunities that will get them closer to their goals.
This leaves the question: So what do I do with my money?
BlackRock’s survey provides insights into how you can learn from
other investors and think differently about saving, investing and
planning for your financial future. We encourage you to speak
with your financial professional about these ideas and ways to
incorporate them into your investment portfolio.
15. W h at In v e s t o r s a r e T hink in g [ 1 5 ]
Estimate Your Retirement
Income Using BlackRock’s
CoRI Retirement Indexes
One of the biggest challenges
investors face is knowing just
how much they need to save
to get the income they want
during retirement.
To help address this problem,
BlackRock developed the CoRI
Retirement Indexes. These
indexes can help estimate how
much an investor would need
to have saved today to generate
each dollar of annual income
in retirement, which can help
pre-retirees see more clearly
what they need to do to reach
their goals. Visit our online tool
at blackrock.com to learn more.
RETHINK YOUR BONDS
Cash and bonds play an essential part in everyone’s finances, but with
historically low yields and concerns about the potential for rising rates, these
traditional investments may not help close the retirement income gap. Using
ultra-short duration strategies to move cash off the sidelines and considering
an allocation to flexible, unconstrained bond strategies can help you seek
incremental yield and minimize interest rate risk.
SEEK INCOME IN DIFFERENT PLACES
Today’s environment of historically low yields and heightened volatility has led
investors to ask how to find more income. Striking a prudent balance between
income and risk requires widening the opportunity set, taking a flexible
approach and making sure you don’t overreach.
SEEK GROWTH WITH A MEASURE OF DOWNSIDE
PROTECTION IN UNPREDICTABLE MARKETS
With lifespans increasing and traditional bond yields largely unattractive,
investors with aspirations of a long, comfortable retirement will need to consider
saving for retirement as early as possible, but also think about strategies to
achieve more growth. Stocks are a powerful tool to generate both growth and
income; consider diversified strategies that focus on mitigating risk.
EXPAND YOUR INDEXING
Investors use indexing as a straightforward and cost-effective approach to
achieving their investment goals. Indexing provides instant diversification when
accessed through an exchange traded fund (ETF). ETFs can be used as essential
building blocks for the core of investor portfolios, offering a wide array of
exposures to help capture opportunities.