Forget your wallet, what’s in your 401k?
Bank and credit card giant Capital One finds that Americans continue to lack confidence, experience and trust when it comes to retirement planning and investing.
The annual survey found less than two thirds of Americans feel confident they’re saving enough to retire comfortably—down from 64 percent a year ago and 72 percent in 2015—and even fewer (49 percent) have established a long-term financial plan.
Meanwhile, investors are seeking digital tools like financial aggregators and robo-advisors to help plan for the long-term, and unbiased human advice to help in times of market volatility and uncertainty.
“Today’s investors need a combination of great digital tools and unbiased advice to navigate the markets and get on a path to action and confidence,” Yvette Butler, president of Capital One Investing, said in a statement. “We’re committed to enabling smart investing habits by delivering straightforward, accessible tools and experiences that leverage the best of technology and human advice.”
- The top factors impacting Americans’ confidence in investing are: lack of knowledge and experience, distrust of the markets and financial industry, lack of pricing transparency and investing complexity.
- Men tend to be more confident than women, with 65 percent feeling confident they’re on track, compared to 59 percent of women. Men feel less concerned about complexity and lack of pricing transparency.
- When markets are volatile, most (74 percent) investors would prefer engaging a financial advisor (consistent with 2016), with millennials the least likely to seek human advice during turbulent markets compared to Generation X and Baby Boomers.
- Nearly half (44 percent) of investors would pay more for investing advice if it helped them reach Millennials are most likely to think an advisor can improve financial peace of mind compared to Generation X and Baby Boomers.
- Millennials also most value robo-advice, with 65 percent saying it can enhance financial peace of mind, compared to 53 percent of Generation X and 31 percent of Baby Boomers.
“It is fascinating to see how investors of different ages and backgrounds perceive, prioritize and engage in financial planning,” Butler added. “These insights help us build and deliver a broad set of solutions that are designed to meet investors on their terms, enabling them to pursue their dreams.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
