Good News, Bad News in Edward Jones Retirement Survey

Portfolios show signs of recovery while number of those saving declines

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Jun 14, 2011, 08:00 ET

ST. LOUIS, June 14, 2011 /PRNewswire/ -- More investors say their portfolios have recovered from market lows three years ago, but fewer Americans are saving for retirement at all. According to a new survey released today by financial services firm Edward Jones, 15 percent of Americans said their portfolios already have recovered from the financial downturn versus 12 percent in April 2010. However, 25 percent indicated they are not currently saving for retirement, a number that has increased from 16 percent in 2010.

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The number of Americans between the ages of 18 to 34 not saving for retirement increased significantly from 26 percent in 2010 to nearly half (49 percent) of those polled in 2011.

The survey also showed that although more than half (54 percent) of Americans' retirement portfolios have not recovered from the economic downturn, that number is improved from a year ago when 67 percent responded that their portfolios had not yet recovered.

"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 Thoma, Investment Policy Committee member 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."

Conducted by Opinion Research Corporation, the survey of 1,009 respondents found that Americans between the ages of 55 to 64 saw their retirement savings increase significantly compared to the previous year. Twenty-one percent of respondents said their retirement savings are back to normal levels in 2011 compared to 14 percent of those in the same age bracket in 2010.

Americans who expect their portfolios to recover in more than three years also decreased to 21 percent from 29 percent in April 2010.

Other key findings from the survey included:

Respondents in the West and Midwest were most optimistic about their retirement savings with 18 percent and 17 percent respectively indicating their retirement savings have recovered.
While 62 percent of respondents between the ages of 35 to 44 still believe their retirement portfolios have not yet recovered, this is a significant improvement from last year (76 percent).
The percentage of respondents who expect their retirement portfolios to take six years or more to recover fell slightly to 12 percent in 2011 from 15 percent in 2010.

About Edward Jones

Edward Jones provides financial services for individual investors in the United States and, through its affiliate, in Canada. Every aspect of the firm's business, from the types of investment options offered to the location of branch offices, is designed to cater to individual investors in the communities in which they live and work. The firm's 12,000-plus financial advisors work directly with nearly 7 million clients to understand their personal goals -- from college savings to retirement -- and create long-term investment solutions that emphasize a well-balanced portfolio and a buy-and-hold strategy. Edward Jones embraces the importance of building long-term, face-to-face relationships with clients, helping them to understand and make sense of the investment options available today.

Edward Jones, which ranked No. 11 on FORTUNE magazine's "100 Best Companies to Work For 2011," is headquartered in St. Louis. The Edward Jones Web site is located at www.edwardjones.com, and its recruiting Web site is www.careers.edwardjones.com. Member SIPC.

* Survey was based on 1,009 telephone interviews of U.S. adults conducted between the dates of May 19-22. The margin of error was +/-3%. The 2010 survey referenced in the release was conducted between the dates of April 8 and 11 and was based on 1,013 telephone interviews of U.S. adults.

SOURCE Edward Jones