In the Federal Reserve's 2015 report on US household economic well-being, about half of respondents who said they were working towards saving for retirement were less than confident they were making good investment choices.
According to the Fed, 48% of respondents who had either a defined contribution plan or a self-directed retirement plan were either "not confident" or just "slightly confident" in their ability to make the right investment decisions in these accounts.
These plans are basically
standard 401(k) plans you manage alone or similar accounts in which your
employer matches a certain amount of what you set aside but promises no
future benefit; 48% of non-retirees with savings have these kinds of
accounts.
Pensions, in contrast, are
"defined benefit" plans, meaning your contributions promise certain
benefits down the road; just 25% of non-retirees saving for retirement
possess these plans.
So just barely over half of those saving for retirement on their own think they know what they're doing. Though as we've written:
if you're trying to beat the market on your own — which is not
necessarily what these people are doing, just a possibility! — you will
lose.
This is a bit discouraging.Culled from Business Insider
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