Study: Strong Investor Interest in a Retirement-Focused Finance Curriculum
September 23, 2015 — NEW YORK–(BUSINESS WIRE)–E*TRADE Financial Corporation (NASDAQ:ETFC) today announced results from the most recent wave of StreetWise, E*TRADE’s quarterly tracking study of experienced investors. Results show that retirement saving weighs heavily on investors’ minds, and many wish they had learned more about saving for retirement.
• Not having enough saved for retirement is a greater fear than physical injury or job loss.
• Retirement is the number-one reason why experienced investors save for the long term.
• “Saving for Retirement” is the finance course investors most wish they had taken in school.
Experienced investors’ retirement concerns come as nearly a quarter of all investors have made early withdrawals from a retirement account, with more than one in 10 having done so to make a large purchase, to vacation, or just to spend money on themselves. Of investors who made early withdrawals, roughly half of those under age 55 regret it.
“Education and discipline are crucial to a regret-free retirement savings plan,” said Lena Haas, SVP, Retirement, Investing and Savings at E*TRADE Financial. “Knowledge builds confidence and certainty that you are on track and making smart decisions. The beginning of the school year is a reminder that, when it comes to investing, the learning never stops. Investors of all experience levels can benefit from additional education in learning how to best prepare for retirement.”
Ms. Haas highlighted the following tips and resources for investors looking to learn more about saving for retirement:
- There are myriad resources available for all experience levels. You do not need a degree in finance to take more control over your retirement savings. Investors have access to an unprecedented amount of educational resources both online and in-person from beginner to advanced levels. E*TRADE offers multiple courses covering topics ranging from asset classes, to portfolio management and risk. Some allow users to take an interactive quiz at the end to help measure and track progress. Users can also sign up for live events, including in-person presentations, as well as branch and Web-based seminars.
- Investors can learn their own way, at their own pace. Educational content comes in a variety of formats, including online, print, interactive, and video. In addition to more than 400 individual articles and financial expert analyses, E*TRADE offers 50+ educational videos through its mobile app — each with a run time of roughly three minutes — so users can receive bite-sized information while on the go.
- Investors can create a curriculum tailored to them. E*TRADE’s Investor Education Center allows customers to filter and sort by topic, content type, experience level, and rating. Investors can bookmark content and provide ratings and feedback.
For the full report of the Q315 StreetWise study results, click here.
E*TRADE helps investors balance today’s needs with tomorrow’s goals through pioneering digital tools and personalized, smart guidance, both online and from nearly 300 seasoned Financial Consultants on the phone or in-person at branches throughout the U.S. To learn more about how E*TRADE helps investors make retirement easier, visit etrade.com/retirement.
Referenced Data | ||||||||||
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How often, if at all, do you worry about each of the following? ** Summary of ‘Always/ Frequently’ ** | ||||||||||
| TOTAL |
| AGE: 25-34 |
| AGE: 35-54 |
| AGE: 55+ | |||
Not having enough saved for retirement | 30% | 37% | 35% | 21% | ||||||
Loss of a loved one | 24% | 33% | 22% | 20% | ||||||
Not understanding how to invest smartly | 22% | 39% | 20% | 14% | ||||||
Personal relationship issues | 17% | 32% | 18% | 8% | ||||||
Physical injury | 16% | 27% | 16% | 11% | ||||||
Loss of a job |
| 16% |
| 29% |
| 19% |
| 7% | ||
| ||||||||||
What is the main reason you are saving for the long-term? (% = Selected as a top three choice.) | ||||||||||
TOTAL | AGE: 25-34 | AGE: 35-54 | AGE: 55+ | |||||||
For retirement | 72% | 57% | 76% | 78% | ||||||
For an unknown emergency | 42% | 37% | 43% | 45% | ||||||
Simply because it’s the right thing to do | 41% | 41% | 36% | 46% | ||||||
For a big purchase such as a car or new home | 18% | 32% | 14% | 14% | ||||||
To get rich | 14% | 20% | 16% | 10% | ||||||
For summer vacation or entertainment | 14% | 15% | 14% | 13% | ||||||
To pay for an education | 13% | 15% | 20% | 4% | ||||||
To take care of a parent or other older relative | 7% | 9% | 7% | 4% | ||||||
I am not saving for the long-term, just playing the stock market | 3% | 3% | 3% | 4% | ||||||
Other |
| 5% |
| 3% |
| 3% |
| 9% | ||
| ||||||||||
Which, if any, investing course do you wish you could have taken when you were younger, which would have helped you | ||||||||||
TOTAL | AGE: 25-34 | AGE: 35-54 | AGE: 55+ | |||||||
Saving for Retirement | 48% | 45% | 51% | 49% | ||||||
Understanding the Markets | 47% | 49% | 45% | 49% | ||||||
Active Trading 101 | 28% | 34% | 28% | 27% | ||||||
Introduction to Asset Classes & Derivatives | 20% | 28% | 21% | 16% | ||||||
Other |
| 14% |
| 11% |
| 14% |
| 14% | ||
| ||||||||||
Have you ever taken out money from an IRA or 401(k) before the age of 59.5 and, if so, for what? (Select all that apply) | ||||||||||
TOTAL |
| AGE: 25-34 | AGE: 35-54 | AGE: 55+ | ||||||
No, I have never taken out money from an IRA or 401(k) before the age of 59.5 | 76% | 72% | 76% | 82% | ||||||
Yes (Net) | 24% | 28% | 25% | 18% | ||||||
Yes, to make a large purchase | 7% | 8% | 9% | 5% | ||||||
Yes, because I became unemployed | 7% | 10% | 7% | 4% | ||||||
Yes, to pay for education | 6% | 9% | 7% | 2% | ||||||
Yes, for a medical emergency | 5% | 10% | 5% | 2% | ||||||
Yes, to simply spend on myself or my family | 3% | 4% | 2% | 4% | ||||||
Yes, to spend on vacations or entertainment | 1% | – | 1% | 1% | ||||||
Yes, Other |
| 3% |
| 2% |
| 3% |
| 5% | ||
| ||||||||||
Have you ever regretted your decision to take money from an IRA or 401(k) before the age of 59.5? | ||||||||||
TOTAL | AGE: 25-34 | AGE: 35-54 | AGE: 55+ | |||||||
Somewhat/Very Much Regretted | 44% | 51% | 51% | 19% | ||||||
Regretted a little bit | 19% | 26% | 16% | 21% | ||||||
Did not regret at all |
| 37% |
| 23% |
| 33% |
| 60% | ||
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