Low Confidence Among Investors Over Retirement Investments, Survey Finds 

Confidence among American investors remains low when it comes to managing retirement and college savings accounts, according to a new Pontera survey of 400 registered financial advisors and 1,000 individual respondents conducted in July.

Fewer than one in five Americans described themselves as “highly knowledgeable” and “confident” in managing these accounts, while 42% admitted to feeling stressed, anxious, cautious, or confused due to concerns such as persistent inflation and rising living costs.  

Only 27% of respondents stated they feel “confident and in-control” about their savings strategies, and 22% stated they felt “motivated and optimistic,” according to the survey. 

Workplace retirement frustrations also loom large, with two-thirds of retirement savers believing they lack authority over key decisions in their employer-sponsored plans. Meanwhile, 76% of advisors reported that clients often express frustration with workplace retirement and savings options.  

The study underscored a pronounced gender gap in retirement savings. Men were nearly 50% more likely than women to report having $100,000 or more saved, while 30% of women had less than $25,000 compared to only 15% of men.

Encouragingly, women who work with advisors tend to fare much better: 55% of female investors with professional guidance report at least $100,000 saved, versus just 29% of women without an advisor.  

Despite the gender gap, women who work with an advisor have significantly better results on their savings than those who do not. The survey found that 55% of women with advisors report at least $100,000 saved, compared to 29% of women without advisors. 

As more challenges arise in the financial landscape, including market volatility, financial advisors can be viewed as a resource for investors as they navigate the multiple financial uncertainties.  

Over 34% of investors who have worked with financial advisors “feel more prepared” for retirement planning, college planning, and long-term savings, compared to only 24% of people who do not have a financial advisor and depend on default options, the survey stated. 

Investors who chose to work with an advisor were twice as likely to have more than $250,000 in their retirement savings. Financial advisors were also found to help create IRAs for their clients, and other various services, as demand for held-away accounts has surged, the survey stated. 

“It is vital that savers have access to an expert who can simplify complex investment options for them and help create a cohesive strategy for managing their savings accounts as part of their holistic financial plan,” Yoav Zurel, CEO at Pontera, said.