Most Investors Lack Investment Knowledge, Survey Finds
May 27, 2002
The average American is not saving enough, devotes little time to managing his or her retirement investments and lacks the knowledge to invest properly, a survey by John Hancock Financial Services indicates. Hancock based its findings on a national survey of 801 defined contribution plan investors.
The survey indicates that most retirees will only achieve 50% to 60% of their pre-retirement income, said Wayne Gates, general director of market research with John Hancock
Highlights of the survey found that 40% of respondents said they have little or no investment knowledge and 75% have not rebalanced their portfolios in the past year. More than 50% said they spend only a half an hour or less each month reviewing their retirement portfolios. Another 40% said they do not know what kinds of returns to expect from various investment instruments over the next five to 20 years.
"Although I think participants probably could manage their investments effectively, our survey shows that most of them don't," Gates said.