Betterment's Annual Retail Survey Finds Majority of Investors Focused on Interest Rates and Elections in 2024

57% of Investors Feel Anxious About the 2024 Election, and 52% Have Opened New Accounts to Capture Yield Amid High Interest Rates

NEW YORK, June 26, 2024 /PRNewswire/ -- Betterment, the largest independent digital financial advisor in the US, today released a new survey examining retail investors' mindsets and investing behaviors, amid a year marked by lingering inflation and uncertainty around the market impact of the upcoming election. 

Betterment's second annual 2024 Retail Investor Survey, which tracks data from 1,200 retail investors across four generations (Gen Z, Millennials, Gen X, and Boomers), found investors are increasingly seeking advice as they balance the high cost of living with long-term financial goals. The quest for guidance finds investors tapping sources ranging from financial advisors to social media. Due to – or perhaps in spite of – that influence, investors report positive financial returns and an overall optimistic financial outlook.

Key findings from Betterment's 2024 Retail Investor Survey include:

• High interest rates are driving investors to yield products:
  • More than three quarters of investors (78%) said they pay attention to rates.
  • 50% of investors increased savings to high-yield accounts and 42% of investors increased their cash holdings.
  • 52% of investors have "chased yield", or opened new accounts to take advantage of high interest rates.
• Investors are playing it safe until they see the election results:
  • Fifty-seven percent of investors are anxious about the upcoming elections and roughly 40% expect to either move or pull investments from the market based on the outcome of the election.
  • When considering the potential impact of the elections, 47% of respondents are concerned that inflation will remain high and 29% noted they will increase their holdings in savings accounts.
• Financial advisors remain sought after across age groups:
  • Investors with financial advisors (42%) consistently report more positive financial outlooks — from confidence in their financial situations to better investment performance and a greater likelihood of having an emergency fund.
  • Financial advisors remain the top trusted source of financial advice (40%)
  • More than one third of investors (34%) hired a financial advisor within the last year, as consumers look to professionals for help navigating today's economy.
• Trust in social media as a personal finance resource continues to rise:
  • 28% of respondents rank social media within their top three most trusted sources, up from 22% in 2023.
  • 61% of Gen Z respondents take financial advice from social media, vs. 55% of Millenials, 27% of Gen X, and 9% of Boomers.
  • YouTube reigns as the top social media channel for financial advice (61%), vs. 47% for Instagram and Facebook.

"In the face of lingering inflation and an uncertain election, investors of all ages continue to crave sound, long term financial advice," said Sarah Levy, CEO of Betterment. "We remain committed to demystifying the complex and supporting them to make the most of their investing and saving strategies in all market conditions." 

Read or download the full report here.

Methodology
An online survey commissioned by Betterment was presented to a group of potential respondents. A total of 1,200 respondents completed the survey between March 27 - April 3, 2024, which was conducted by Sago Group, an independent research company.

The survey collected a representative sample of U.S. respondents who hold investments beyond solely a 401(k) and was split evenly (300 per group)  between the four major generation groups (Boomers, Gen X, Millennials, Gen Z). All were invited to take the survey via an email invitation. Panel respondents were incentivized to participate via the panel's established points program.

Findings and analysis are presented for informational purposes only and are not intended to be investment advice, nor is this indicative of client sentiment or experience.

Website links provided for educational purposes only.

About Betterment
Betterment LLC ("Betterment') is the largest independent digital financial advisor, using automated technology powered by human expertise to fulfill a singular mission: making people's lives better. With easy-to-use saving, investing, and retirement solutions, Betterment is built to help people optimize their money, no matter their level of experience or how the market is doing. Launched in 2010, Betterment helps more than 850,000 customers manage over $45 billion with curated selections of low-cost, expert-built investing portfolios; personalized guidance; and tax-smart tools. The company has received multiple awards for its investing app, including Buy Side from WSJ (2024) and Bankrate (2024). Learn more and for additional disclosure on these awards, visit https://www.betterment.com/#award-disclosure.

Contact
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SOURCE Betterment