Despite rising concerns about meeting investment goals, most investors are “stuck in place” with current portfolio allocations, according to findings released today from the latest “Barometer” survey of investors and advisors conducted by BlackRock (NYSE: BLK).
Only around one in 10 investors is making portfolio adjustments, as the results suggest uncertainty in the face of volatility is battling optimism about the future direction of the market.
Retirement: Reshaping Expectations, Understanding Longevity
While trying to manage the challenges of uncertain and volatile markets, many of the investors surveyed are also grappling with the profound financial management challenges of retirement planning.Nearly half of investors – 46 percent – say they are considering a later retirement than they initially planned, up from 30 percent a year ago. Their advisors, polled in a separate survey, point to concerns about longevity of savings, severe loss of portfolio, and market volatility as the top three factors affecting retirement timing. Six of 10 advisors agree that clients are lowering their expectations for the lifestyle they will have when retired, and 83 percent indicate that clients are generally planning on working longer and retiring later. “Living longer is a wonderful prospect, but for many investors the notion only heightens concern about whether their money will last,” said Frank Porcelli, head of BlackRock’s U.S. Retail Business. “But in fact, longevity gives investors greater ability to ride out market cycles, use a broader range of investments, and keep their money working hard for them over time.” In addition to achieving their retirement goals, only around half of respondents felt prepared when it comes to planning for the education of a child or other dependent, considerably below their confidence level for other investment objectives. Investors Are Optimistic, Yet Cautious in Face of Market Uncertainty While concerns about meeting these investment goals and optimism about the future direction of the market would suggest a more active posture in adjusting allocations, the survey results suggest that many investors are unclear about what specific investment directions make most sense in an uncertain and volatile market environment.
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