Survey respondents estimate they lost more than a third of their assets during the downturn, yet 62% said they think they can grow back the money they lost in their workplace retirement plans, and more than two-thirds of this group thinks it will be within five years, according to a press release.
Eight in 10 respondents acknowledged a need to start rebuilding their savings after the recession, and 73% of retirees said they are exploring new ways to grow their assets.
Although most respondents are optimistic they can grow back the money they lost, they are still shying away from aggressive portfolios. Seven in 10 say that being too aggressive with investments is riskier than being too conservative, compared with survey results from two years ago when respondents were evenly split on the same question, the press release said.
Following retirement savings losses during the recession, investors are re-evaluating their overall approach to retirement planning, the Prudential survey found. More than three-quarters (77%) of those surveyed said they will pay more diligent attention to their investments following the recession.
Nearly half (48%) are looking to the Internet for financial guidance, compared to 37% before the market decline; however, two-thirds said they would trust a financial professional for information and guidance on how to best manage their retirement savings and investments.
In addition, two-thirds indicated they would likely pursue a solution that offered guaranteed income, and three-quarters said a product with guarantees for lifetime income, protection of principal, and opportunities to lock in market gains would be important or nice to have as part of their portfolio. Seven in 10 said they would put money back into the stock market if protected by such income guarantees.
Sixty-six percent said their preference for learning more about guaranteed income would be by talking to a financial professional. Prudential surveyed 1,001 Americans ages 45 to 75 with $100,000 or more in retirement savings.