CORRECTING & REPLACING GRAPHIC BlackRock Global Investor Pulse Survey: Day-to-Day Financial Concerns Weigh Heavy, but America...
June 05 2017 - 2:45PM
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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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170605005882/en/
Media:BlackRockSally Lyden,
646-310-1273Sally.lyden@blackrock.com
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