Investor optimism rose to its highest level in more than two years, according to the Wells Fargo/Gallup Investor and Retirement Optimism Index.
The index, which is based on a telephone survey that was conducted May 16-27, 2013, rose to +43, an increase of 12 points since March. Investors are more optimistic about their ability to maintain incomes over the next 12 months and optimism is especially high among non-retired investors. Retired investors also saw an increase in optimism.
Despite higher optimism, more than half of investors claim they haven't personally benefited from the stock market's rise. Forty-three percent say they have personally benefited from the stock market either somewhat or quite a lot.
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Those surveyed for the report were evenly divided on whether the rising stock market has helped the average American by increasing the value of pension or defined contribution accounts.
"Investors are ambivalent about whether the rising stock market benefits them. History shows that investors who save and invest regularly, based on a plan, do benefit from rising stock market values, but at this point, most average investors don't see a strong connection between the markets and their financial well-being," said John Papadopulos, president of Wells Fargo Retirement.
Retirees were more likely to invest in stocks. Thirty-five percent of non-retirees said that real estate was their top investment choice.
The number of investors who say they have a written retirement plan rose 8 percentage points from a year ago to 38 percent. That number increased for those who are already retired.
A quarter of all retirees surveyed say their life in retirement is somewhat worse or much worse than they expected. The number is higher for retirees who say they don't have a written plan for retirement.
Those surveyed also gave their opinions on the conditions that are hurting investors the most. Seventy-three percent cited a politically divided federal government, followed by 67 percent who said it was the deficit and 55 percent who cited unemployment.
More than 1,400 investors with at least $10,000 in savings and investments responded to the survey.
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