A lack of understanding about risk means that at least some workers within 15 years of retirement aren't taking the appropriate steps to protect their assets. (Image: Shutterstock)
Workers approaching retirement are taking too much risk with their retirement savings.
So says a new MassMutual Retirement Savings Risk Study, which finds that a lack of understanding about risk means that at least some retirees and workers within 15 years of retirement aren't taking the appropriate steps to protect their assets.
Retirees, the study finds, are more likely than pre-retirees to say they are not substantially more conservative with their investments after retirement (36 percent compared with 29 percent). But pre-retirees are more likely to say they will become substantially more conservative when they retire, with 43 percent of them saying they expect to be primarily focused on asset preservation when they retire. In fact, just 23 percent of retirees said they were focused on asset preservation at that time.
Many retirees and pre-retirees are more focused on growing rather than preserving their assets. For instance, 59 percent of pre-retirees and 32 percent of retirees describe their primary investment strategy as focused on either "aggressive growth" or "moderate growth." In addition, 32 percent of pre-retirees and 49 percent of retirees characterize their investment mix as a balance between growing and preserving their savings.
