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BLACKROCK GLOBAL INVESTOR PULSE SURVEY: DAY-TO-DAY
FINANCIAL CONCERNS WEIGH HEAVY, BUT AMERICANS KEEP AN EYE TO THE FUTURE
The top financial concerns for Americans are day-to-day issues such as
the cost of living and healthcare costs, but they are also working to
address their retirement needs by moving cash into the market, according
to the Global Investor Pulse survey from BlackRock (NYSE:BLK).
Retirement was cited by Americans as the most important financial
priority (43%) after saving money generally (58%). In keeping with this
focus on retirement and demonstrating an increased interest in
investing, Americans have decreased cash allocations since BlackRock’s
[election pulse] survey in November 2016.
“Americans continue to grapple with day-to-day financial concerns, but
they also recognize the importance of saving for retirement,” said
BlackRock President Rob Kapito. “Americans are showing an increased
willingness to invest and save for the future.”
On average, cash now totals 58% of Americans’ assets, down from 67% in
late 2016. Among those Americans most actively considering stepping
further out of cash, the top reasons to do so are “the return is better
in the long run” (34%) and “to be better prepared for retirement” (33%).
Despite improvements, Americans still hold excess cash and many are
reluctant to part with it. Less than half (45%) of Americans with cash
are considering deploying more of it to investments.
Americans also expressed the importance of financial guidance, with 38%
stating that “having a clear understanding of the risks and returns of
the investment” is a key factor that would encourage them to invest more.
Challenges Remain: Underinvestment Creates a Retirement Savings Gap
Four in 10 Americans (39%) have not started saving for retirement, with
women (43%) considerably more likely than men (35%) not to be retirement
savers.
The savings gap seems to be weighing on retirement confidence, with just
47% of Americans either knowing (16%) or thinking they know (31%) that
they are on track to receive the income they want in retirement. Only
one in three Americans (36%) are confident they will have the retirement
income they need.
“Many Americans are facing a big gap in their retirement savings, but
financial advice can be a key factor in helping people develop a plan
and get back on track,” said Kapito. “Americans are telling us that
having advice plays a key role in their financial decision-making.”
According to the BlackRock research, on average, Americans estimate that
they will need about $48,700 in annual retirement income, and expect to
need $437,500 in savings by the time they retire. Yet, that much in
accumulated assets would fund Americans’ desired income for only about
nine years – vs. the 17 years that Americans on average can expect to
live past retirement age. Americans are also not keeping pace even with
that inadequate savings goal: On average, they have accumulated just
$55,000 for retirement, only about 13% of what they expect to need.
Use of Technology Aligns with Positive Planning Action
Using technology to monitor investments and retirement savings
encourages people to take action to improve their financial futures or
to adjust to a more realistic understanding of their finances, the
BlackRock survey indicates. More than three quarters of Americans who
are monitoring their retirement plans online have taken positive action
as a result: About four in 10 (39%) have decided to spend less, 24% have
increased pension contributions, and 20% have changed their income
expectations for retirement. Americans who are most actively considering
moving cash to investments are considerably more likely than other
Americans (70%) to be interested in using technology to choose a
portfolio.
“Technology is having an incredible, positive impact on Americans’
investing behavior,” said Kapito. “Not only does it give people the
information and the confidence they need about their finances – it is
helping them make smarter decisions.”
About nine of 10 (89%) of those managing investments online say it has
had a positive impact on their investing behavior; about four in 10 say
that online monitoring lets them “feel like I am more in control of my
money” and “reassures me about what my money is doing.”
Among those managing investments online, Millennials are more likely
than any other age group to say that technology has “encouraged me to
keep investing” and “I feel more confident about investing now.”
About BlackRock
BlackRock is a global leader in investment management, risk management
and advisory services for institutional and retail clients. At March 31,
2017, BlackRock’s AUM was $5.4 trillion. BlackRock helps clients around
the world meet their goals and overcome challenges with a range of
products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. As of March 31, 2017, the firm had
approximately 13,000 employees in more than 30 countries and a major
presence in global markets, including North and South America, Europe,
Asia, Australia and the Middle East and Africa. For additional
information, please visit the Company’s website at www.blackrock.com
| Twitter: @blackrock_news
| Blog: www.blackrockblog.com
| LinkedIn: www.linkedin.com/company/blackrock
About the Global Investor Pulse Survey
BlackRock’s Global Investor Pulse Survey examines investing and
attitudes and behaviors across the world. The 2017 survey included
28,000 respondents in 18 countries. The U.S. sample included 4,000
respondents. More information can be found at https://www.blackrock.com/investing/insights/investor-pulse.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170605005882/en/
Media:
BlackRock
Sally Lyden, 646-310-1273
Sally.lyden@blackrock.com
Source: BlackRock