The BlackRock survey also suggests that retirement planning does not get all the focus it deserves: When compared with a list of other common pursuits, planning for retirement ranks third among things that investors spent the most time on last year (20 percent), after planning vacations (30 percent) and exercising at the gym (29 percent).
“It’s understandable that investors are not paying as much attention to retirement as they ought to, given today’s market uncertainty in addition to questions about how much they will need, how long they will live or where to invest,” adds Mr. Porcelli. “But investors don’t have to lower expectations for life after retirement. One of the most important steps they can take is to fully educate themselves about the facts of retirement and then ensure that their savings and investment strategies are fully aligned with those needs.”
Addressing the educational need, earlier this month BlackRock launched The BlackRock Retirement Center ( www.BlackRock.com/Retirement), which features practical and relevant age-based content and insights to help individuals prepare for retirement in what BlackRock has called a “New World of Investing.”
Stocks Named Most Important Asset Class in Retirement; Most Investors Are “Standing Still” in Their PortfoliosMeeting retirement goals today requires dynamic asset allocation that reflects the specific goals, risk tolerance and time horizon of each individual investor. The majority of unretired investors rate stocks (81 percent) as the most important retirement investment vehicle followed by bonds (60 percent), cash (57 percent) and annuities (48 percent). But at the same time, four in 10 non-retired investors surveyed by BlackRock agree that they plan to be very “risk averse” in their retirement investing; four in 10 also agree that they don’t think there is “a safe way to invest for retirement.” “It’s good to see investors’ understanding of the importance of equities in investing for retirement. However, fund flow data tell us that most investors are underweight equities and overweight traditional core bond holdings and cash,” noted Mr. Porcelli. “With interest rates at historical lows and the risk of inflation, investors need to protect and grow their money with investments that span asset classes and geographies.”