Americans continue to lack confidence, experience and trust in planning for retirement, according to Capital One Investing’s latest Financial Freedom Survey.
The annual survey, which measures sentiment and behaviors related to investing and retirement, found 62 percent of Americans feel confident they are saving enough to retire comfortably. This is down from 64 percent a year ago and 72 percent in 2015.
According to survey respondents, there are several factors impacting Americans’ confidence. Fifty one percent factored a lack of knowledge and experience in investing, 49 percent believed it was distrust of the markets and financial industry, 45 percent believed it was lack of pricing transparency, and 42 percent factored investing complexity.
Additionally, 65 percent of men are confident they are on track, compared to 59 percent of women.
While 65 percent of non-retired Americans said they are putting away some portion of their income for retirement, only 49 percent report having a long-term financial plan.
Thirty nine percent of non-retired Americans believe they should contribute 15 percent or more of their income to retirement, yet only 13 percent are doing so — down two points from 2016. Fifty two percent are contributing 15 percent or less (consistent with 2016) and 32 percent are not saving anything at all (up two points from 2016).
Of the survey participants, 71 percent of working Americans have access to an employer-based retirement plan. Out of those individuals, only 55 percent of millennials have access to an employer-based retirement plan, compared to 83 percent of Generation X and 80 percent of Baby Boomers.
Meanwhile, investors see differing degrees of value in financial aggregators (83 percent), retirement calculators (73 percent), and robo-advisors (56 percent).
“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.
When markets are volatile, 74 percent investors would prefer engaging a financial advisor (consistent with 2016). Millennials are the least likely to seek human advice during turbulent markets at 69 percent compared to Generation X at 75 percent and Baby Boomers at 74 percent.
Sixty six percent of Americans believe access to a financial advisor can improve financial peace of mind, compared to 46 percent who said it can be improved by a robo-advisor. Forty four percent of investors would pay more for investing advice if it helped them reach their goals.