Early Release: E*TRADE Shares Retirement Sentiment Data And Savings Tips

E*TRADE Financial Corp ETFC recently spoke with Benzinga and shared some as-of-yet uncirculated data and tips from their senior vice president of retirement, investing and savings, Lena Haas, regarding the disparity between investor sentiment and action in regards to retirement.

Each quarter, E*TRADE conducts a tracking study titled "StreetWise," which follows 900+ experienced investors and evaluates their patterns of thought and subsequent actions.

Results

This most recent installment resulted in some interesting findings, including stronger concern about retirement savings over physical injury, relationships and even job loss.

The concern over not having enough for retirement was cited to occur as frequently as concerns for losing loved ones. When asked how often investors worried about the following, they responded with a percentage of frequency (with 100 percent equaling constant/always):

  • Not enough retirement savings: 30 percent
  • Loss of a loved one: 30 percent
  • Lacking Investing Smarts/Understanding: 22 percent
  • Relationship Issues: 20 percent
  • Job Loss: 18 percent
  • Physical injury: 17 percent

Related Link: Retiree Taxes: A Closer Look

When asked about what influences the concerns over retirement savings, the survey participants listed short-term expenses including housing, food and utilities as main strains upon savings. However, other influencers negatively impacting retirement savings included "living for today."

Considering specific barriers, respondents claimed that the following were significant concerns (with 100 percent being very concerning):

  • Family healthcare costs: 45 percent
  • Rent/Mortgage: 38 percent
  • Living for today: 37 percent
  • Daily living expenses: 35 percent
  • Children's education expenses: 32 percent
  • Child care: 20 percent
  • Student loans: 20 percent

Haas noted, "Investors have the all-too-human tendency to value today's expenses over future security."

"The key to combatting this emotional decision-making is in how we contribute to our plan. We must remove emotion from the equation – and we can do that through automation."

Related Link: Bankrate Releases Ranking Of 172 Cities Based On Satisfaction For Retirees

Expert Suggestions

Haas shared that automated investing can help deter the fear and concern over retirement by setting up a continual approach to prepare for that period of uncertainty. By acting now, and frequently, Haas suggests that control over retirement sentiment can be reined in and more easily contended with.

Specifically, Haas offered these three tips:

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Top StoriesPersonal FinanceInterviewInvestor SentimentLena Haasretirementretirement savingsstudent loans
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!