Almost half of American investors surveyed by the Wells Fargo/Gallup Investor and Retirement Optimism Index said they are concerned about outliving their savings.
According to the survey conducted in August, 50 percent of non-retired American investors and 36 percent of those who are retired are worried about running out of money and becoming completely dependent on Social Security checks.
“Investors are saying they’re more optimistic about the economy and the job market. But non-retirees worry about their ability to earn more in their lifetime,” said Karen Wimbish, director of Retail Retirement at Wells Fargo.
Most non-retired investors said they don’t expect their income to grow: 56 percent don’t believe that their income will be significantly higher in the future, while 42 percent see a potential for income growth. More pessimistic about their future earnings are those with $100,000 or more in assets (61 percent) than those with less than $100,000 in assets (51 percent).
“There are tangible reasons for a lot of people to worry,” said Wimbish. According to her, people still “haven’t healed” from their losses during the recent financial crisis and thus are hesitant to invest in the stock market.
“Some are investing in the market,” Wimbish said, “but they are doing it reluctantly. We tell people to start saving as much as you can as soon as you can.”
Sources:
Wells Fargo/Gallup: Investor Optimism Highest Since 2007
Outliving Savings Is Retirement Fear for Many
Wells Fargo’s Retirement Survey Finds 6-Figure Earners More Worried
Featured Image by Amanda Mills
Tags: gold, gold investment, retirement savings, stock market
