Investor optimism surged in 2012, according to the February Wells Fargo/Gallup Investor and Retirement Optimism Index, with 72 percent of those polled saying they are either better off or no worse off than they were nearly four years ago. Only 27 percent said they were worse off financially.
Two-thirds of investors said there is plenty of opportunity in the U.S. today to get ahead, while one-third of people surveyed said there is not much opportunity. Another telling statistic is the fact that 71 percent of all investors believe they are better off than their parents were at the same age.
Despite their optimism, 58 percent of investors said they have little to no control over their ability to build retirement savings, down from 65 percent six months ago.
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"It's great to see Americans feeling positive, but it is combined with a sense that saving for retirement is not in their control. We don't want that to become a self-fulfilling prophecy because retirement preparation is, ultimately, their responsibility, and we want people to embrace this mindset," said John Papadopulos, head of Wells Fargo Retirement.
The overall index of +40 is also comprised of non-retiree optimism, which is +41, and retiree optimism, which is +38. In contrast, retiree optimism was at –60 in autumn 2011 and non-retired optimism was at –41.
Investors point to a politically divided federal government as the most important factor affecting the U.S. investment climate right now, with 73 percent saying it is hurting a lot. Other top factors were the federal budget deficit, the unemployment rate and the price of energy. A year ago, a divided government ranked much lower, 51 percent, behind the deficit, 71 percent, unemployment, 71 percent, and energy prices.
Of those surveyed, 57 percent said they believe their children will be better off financially when they reach the same age compared to 41 percent who did not. Fifty-four percent also felt their children would be better prepared for retirement when they are the same age, compared to 43 percent who do not think their children will be better prepared.
These findings are part of the Wells Fargo-Gallup Investor and Retirement Optimism Index, which was conducted February 3-12, 2012. The sampling for the Index included 1,022 investors randomly selected from across the country. For this study, the American investor is defined as any person who is head of a household or a spouse in any household with total savings and investments of $10,000 or more. The sample size is comprised of 75 percent non-retired and 25 percent retirees. Of total respondents, 64 percent had reported annual income of less than $90,000 and 36 percent of $90,000 or more.
Wells Fargo Wealth, Brokerage and Retirement is one of the largest wealth managers in the U.S., with $1.3 trillion under management. WBR includes Wells Fargo Advisors, the third-largest brokerage in the U.S.; Wells Fargo Private Bank, serving high-net-worth individuals and families; Wells Fargo Family Wealth, serving ultra-high-net-worth families; and Wells Fargo Retirement, which manages $236 billion in 401(k) assets for 3.6 million Americans.
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