A survey of 1,009 adults by Edward Jones on their retirement savings found good news and bad news. While 15% said their portfolios have recovered from the economic downturn, up from 12% in April 2010, 25% are not saving for retirement, up from 16% a year ago.
And among those between the ages of 18 and 34, 49% are not saving for retirement, up significantly from 26% in 2010.
“We are seeing a positive trend in the recovery of retirement portfolios, but, unfortunately, more investors, particularly younger investors, are not taking advantage of the recovery and saving for retirement,” said Scott Thomas, a member of the investment policy committee at Edward Jones. “While we cannot predict market corrections or when the next financial downturn will occur, we do know that it benefits all investors to stay invested through the various cycles and focus on long-term financial goals.”
Portfolios recovered at an even larger rate for those between the ages of 55 and 64, with 21% saying their savings are back to normal levels, up from 14% in 2010.
And investors whose portfolios have not yet recovered foresee shortened time periods for them to be made whole, with 21% expecting it to take more than three years, down from 29% in 2010. Those who think it will take six years or longer fell slightly to 12% from 15%.
Among those aged 35 to 44, 62% think their portfolios have not yet recovered, down from 76% last year.