Americans Are Scared to Invest But Don’t Trust Social Security for Retirement

Americans Are Scared to Invest But Don’t Trust Social Security for Retirement

October 22, 2018         Written By Bill Hardekopf

According to the second annual “Someday Scaries” survey from Ally Financial, Americans are hesitant to invest, but also unsure Social Security will be around for their retirement.

Nearly two-thirds of respondents (65%) said they are hesitant to invest in the stock market, up from 61% last year. The youngest generations were the most fearful of investing, with 69% of Gen Z (age 18-23) and 66% of Millennials (24-37) saying they thought the stock market was “scary and/or intimidating.”

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The most common reason for investment fears was making a wrong decision. Over half (52%) of survey participants said they worried about making a bad investment, followed by 34% who feared trusting the wrong person for investment advice. One-third said they lacked funds to invest, and 27% said they didn’t know where to start.

The majority of Americans, 59% said they were relying on Social Security for retirement, but the same number say they do not believe there will be any Social Security funds left when they retire. Forty-five percent say their savings will contribute to retirement, while 33% have a 401(k). Only 23% plan to use investments as a form of retirement.

Perhaps the “scariest” statistic was that 11% of respondents have no retirement plan because they do not think they will be able to retire.

Rich Hagen, president of Ally Invest, said, “People can no longer afford to sit by and hope…they will be healthy enough to continue earning an income well into their senior years. Everyone, particularly young adults, needs to adopt a proactive mindset and have a plan.”

The information contained within this article was accurate as of October 22, 2018. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.