Research from Unum and the Employee Benefit Research Institute reveals that employees’ lack confidence in their financial stability.  Despite an increase in investment balances, contributions rates, and participation in retirement plans such as 401(k)s, investors report their confidence in their financial security is at record lows and it is projected to continue to decrease.  Bank of America Merrill Lynch research reveals that 78% of participants surveyed believe they will work into their late 60s or 70’s.  That percentage was 72% just last year.

Concerned for their financial security, some investors have become extremely conservative, considering cash the safest choice for their future retirement needs.   According to a CNNMoney article, a recent Bankrate survey revealed that 26% of American’s prefer cash as a long-term investment over other forms of investment such as stocks or bonds. This is actually a risky strategy as cash itself has such a low rate of return that it risks the future financial security of the investor.

Has this conservative trend affected your plan in recent years?