Investors Are Still Unprepared For Retirement: Survey

Money Morning recently released the results of its 2021 investor survey, which revealed the latest trends in the knowledge, habits and goals of today's investors.

According to the survey results, the most popular reason for investing in 2021 is to grow net worth. In particular, the stock market has been producing a growing net worth in 2020 and 2021. In the past year, the SPDR S&P 400 ETF Trust SPY has generated a total return of 42.7%.

Age And Education: Not only has investing become more popular among younger Americans, but the survey found the youngest investors are most willing to bet big on investing. Roughly 10% of investors aged 18 to 24 were willing to invest more than 20% of their income, the highest percentage of any age group.

The survey also identified a correlation between investing and education. Investors who have post-graduate degrees invest between 6% and 10% of their income on average, whereas those with a high school diploma or less invest between 1% of 5% of their income.

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Risk And Retirement: While the internet and mobile apps like Robinhood have made it easier than ever to invest on your own, today’s investors are still willing to consult an expert. When asked where they receive financial advice, 27% of those surveyed named financial advisors followed by friends or family at 26% and financial publications at 19%.

When markets get as hot as they have been in the past year, risk management can be a concern. Only 7% of respondents said they consider investing “not risky,” while 55% consider it “somewhat risky” and 15% said it’s “extremely risky.”

Even after the big gains in the market in the past year, many respondents said they're still concerned about retirement. Just 21% of respondents said they're either “very prepared” or “completely prepared” for retirement, while 35% said they're “somewhat prepared” and 18% said they're “not prepared at all.”

Benzinga’s Take: It’s never been easier to open up a trading account on your phone and start learning about investing and putting your money to work for you.

If the world of Wall Street is overwhelming, a conversation with a financial advisor is an easy way to take inventory of your financial situation and get you on the right long-term path to reach your goals.

(Photo by Fabian Blank on Unsplash)