Tags: Natixis | retirement | goals | meet

Survey: Most US Investors Fear They Won't Meet Retirement Goals

Monday, 22 Oct 2012 10:36 AM

Most U.S. investors are worried they won't meet their retirement income goals, fearing they'll outlive their nest eggs or market volatility will wipe out whatever savings they have, a new Natixis Global Asset Management study reveals.

Of the 702 individual investors in the United States surveyed in May and June, 83 percent are worried about saving enough to meet their retirement income goals, while 77 percent fear outliving their assets.

In addition, 53 percent fear losing money due to market volatility, and 58 percent said they would take on only minimal investment risk, even if it means paltry returns.

Editor's Note: The Final Turning Predicted for America. See Proof.

Almost all of the respondents (91 percent) said they were concerned about the national debt, while 88 percent said they worry about higher taxes on investment earnings in the future.

“Individual investors are concerned about achieving their long-term financial goals. They recognize that they need to grow their savings, but they are paralyzed by fear and uncertain about how best to generate returns or protect principal in today’s volatile markets,” said John Hailer, CEO of Natixis Global Asset Management in the Americas and Asia.

“They would like to try new ways of investing, but they would also like to sleep at night. There are strategies that can help investors manage risk and create a durable portfolio, but investors don’t yet know enough about them.”

Stock markets have rallied in recent years largely due to Federal Reserve stimulus measures, which have cut interest rates and increased the country's money supply while making stocks an attractive investment.

A separate poll shows, however, that the rally may be over.

A recent CNNMoney survey of 37 investment strategists and money managers found that the Standard & Poor’s 500 will finish 2012 at 1,440, up 15 percent for the year, but more or less right where it was at the start of the fourth quarter.

Low interest rates and increased liquidity have done all they can for stocks, while fiscal uncertainty is building.

At the end of this year, the Bush-era tax cuts and other tax benefits are set to expire at the same time automatic cuts to government spending agreed upon during 2011 debt ceiling debate kick in, a combination known as a fiscal cliff that could send the country into a recession if left unchecked by Congress.

Many feel lawmakers will work together to avert a crisis, yet uncertainty as to how much in taxes individuals and businesses will be paying next year has prompted many businesses to put off plans to expand and hire, which could send stock prices cooling.

"I'm not suggesting for anyone to get out of their equity positions, but our view is that most of the gains for the year are behind us," said Cetera Financial Group markets strategist Brian Gendreau, whose year-end target for the S&P 500 stands at 1,450, CNNMoney reported.

The S&P 500 is currently trading around 1,430.

Editor's Note: The Final Turning Predicted for America. See Proof.

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