A study has revealed that a number of Americans need to take better investment decisions if they wish to boost their retirement benefits savings. The survey also found that though the plans like 401(k) are helping people, they would still like to know whether they are getting their investment potential maximized.
The Survey on Investments and Retirement Benefits
The survey that says that numerous Americans need to invest in a better manner for nice retirement benefits was conducted by Wells Fargo and it was named the 2016 Wells Fargo Retirement Study. The study was carried out by Harris Poll that managed 1,253 telephone interviews in July-August, 2016. More than 1000 workers were aged 30 or older and 250 of the respondents were retirees.
In the survey, it was highlighted that about 59 percent respondents were more focused on avoiding any loss rather than maximizing the growth of investments for retirement. This percentage did not vary with aging. About 59 percent of people in their thirties, 62 percent of people in their forties, 58 percent of people in their fifties and 52 percent of those who were more than 60 agreed with this approach of investment.
The study also found that although 401(k) plans are beneficial for people who can access it, about 58 percent of people who have it were still looking for more help regarding the plan to ensure that they are making the best possible choices with regard to investment.
Joe Ready, the Head of Wells Fargo Institutional Retirement and Trust has recently stated that people should allocate their investments in such a manner that is best suited for their age and risk tolerance. He believes that the conservative approach to investing especially among the younger Americans may reflect an emotional reaction of the day-to-day market volatility.
Ready also said that it is important not to have a knee-jerk reaction while investing. One must always make only informed decisions while investing. He adds that people who have a long runway before retirement must know how to use the biggest asset they have to boost their retirement benefits savings and the growth potential. The biggest asset of such people is time. If they use the time factor right, they can ensure that they have a peaceful retirement in which funds don’t become a problem in the golden years.