Capital One Investing's Financial Freedom Survey Reveals
Demand for Unbiased Human Advice and Digital Tools as Americans Work to Get on
VA — March 13, 2017 – Americans continue to lack confidence, experience and
trust when it comes to retirement planning and investing, according to Capital
One Investing's latest Financial Freedom Survey measuring current sentiment and
behaviors related to investing and retirement, and tracking America's progress
on the path to financial independence.
annual survey found less than two thirds (62 percent) of Americans feel
confident they're saving enough to retire comfortably – down from 64 percent a
year ago and 72 percent in 2015 – and even fewer (49 percent) have established
a long-term financial plan. Meanwhile, investors are seeking digital tools like
financial aggregators and robo-advisors to help plan for the long-term, and
unbiased human advice to help in times of market volatility and uncertainty.
investors need a combination of great digital tools and unbiased advice to
navigate the markets and get on a path to action and confidence," said Yvette
Butler, president of Capital One Investing. "We're committed to enabling smart
investing habits by delivering straightforward, accessible tools and
experiences that leverage the best of technology and human advice."
are key themes uncovered by the 2017 Financial Freedom Survey.
Limited knowledge and experience, and lack of trust and
transparency, continue to hold many Americans back.
top factors impacting Americans' confidence in investing are: lack of knowledge
and experience (51 percent), distrust of the markets and financial industry (49
percent), lack of pricing transparency (45 percent) and investing complexity
tend to be more confident than women, with 65 percent feeling confident they're
on track, compared to 59 percent of women. Men feel less concerned about
complexity (37 percent men versus 45 percent women) and lack of pricing
transparency (43 percent men versus 46 percent women).
Many Americans want
to boost their retirement nest egg, but aren't taking action.
two-thirds (65 percent) of non-retired Americans say they're putting away some portion of their income for retirement,
yet only half of Americans (49 percent) report having a long-term financial
39 percent of non-retired Americans believe they should contribute 15 percent
or more of their income to retirement, yet only 13 percent are doing so (down
two points from 2016).
than half of non-retired Americans (52 percent) are contributing 15 percent or
less (consistent with 2016) and a third (32 percent) aren't saving anything at
all (up two points from 2016).
percent of working Americans have access to an employer-based retirement plan
but only 55 percent of millennials with access are participating, compared to
83 percent of Generation X and 80 percent of Baby Boomers.
For investors, digital
tools are useful, but human advice is critical in times of uncertainty.
Americans who are investing,
83 percent see value in information aggregators, as well as retirement
calculators (73 percent), technology to connect with advisors (71 percent), digital-human
"hybrid" solutions (69 percent) and robo-advisors (56 percent).
when markets are volatile, most (74 percent) investors would prefer engaging a
financial advisor (consistent with 2016), with millennials the least likely to
seek human advice during turbulent markets (69 percent) compared to Generation
X (75 percent) and Baby Boomers (74 percent).
half (44 percent) of investors would pay more for investing advice if it helped
them reach their goals.
Having access to a
financial advisor would provide financial peace of mind to many Americans, with
millennials particularly optimistic about the power of human advice.
percent of Americans believe access to a financial advisor can improve financial
peace of mind, compared to 46 percent who say it can be improved by a
are most likely to think an advisor can improve financial peace of mind (78
percent) compared to Generation X (67 percent) and Baby Boomers (58 percent).
also most value robo-advice, with 65 percent saying it can enhance financial
peace of mind, compared to 53 percent of Generation X and 31 percent of Baby
The "American dream"
looks different to everyone, but for many, achieving financial freedom is a
nine percent of millennials aim to have a better financial position compared to
their parents; rather, they are more likely to say it relates to living
debt-free (27 percent), feeling financially secure (25 percent) or working
because they want to, not because they have to (22 percent).
are more likely to relate the American dream to feeling financially secure (33
percent of women vs. 23 percent of men) while men say it's working because they
want to, not because they have to (24 percent vs. 13 percent).
are more likely to say it's leaving a financial legacy (18 percent) while non-parents
are more likely to say it's working because they want to, not because they have
to (23 percent).
"It is fascinating to see how
investors of different ages and backgrounds perceive, prioritize and engage in
financial planning," said Butler. "These insights help us build and deliver a
broad set of solutions that are designed to meet investors on their terms,
enabling them to pursue their dreams."
report presents the findings of a study fielded January 12-15, 2017 using ORC
International's Telephone CARAVAN® Omnibus Survey. The study was conducted
using two probability samples: randomly selected landline telephone numbers and
randomly selected mobile (cell) telephone numbers. The combined sample consists
of 1,003 adults (18 years old and older) living in the continental United
States. Of the 1,003 interviews, 503 were from the landline sample and 500 from
the cell phone sample. The margin of error for the sample of 1,003 is +/- 3.09%
at the 95% confidence level. Smaller subgroups will have larger error margins.
About Capital One
One Investing is a full-service brokerage offering a range of investment
services including fully self-directed digital accounts and advised accounts.
At Capital One Investing, our goal is to provide a transparent, accessible,
straightforward investing experience through both self-directed and advised
accounts and educating and empowering individual investors to help them get on
the path to financial freedom.
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@COFInvesting. Use hashtag #FFSurvey to follow the conversation.
Securities are offered by Capital One Investing,
LLC, a registered broker-dealer and Member FINRA/SIPC. Advisory services are
provided by Capital One Advisors, LLC, an SEC registered investment advisor.
Insurance products are offered through Capital One Agency LLC. All are
subsidiaries of Capital
The 2017 Financial Freedom Survey found half (54 percent) of Americans are
investors, with one-fifth (21 percent) only investing through a 401(k) or other
employer-sponsored plan or IRA. One-fifth (19 percent) invest in an employee-sponsored
plan and in other investments, while 14 percent invest independent of an