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