People may not be quite as down in the dumps about their retirement prospects as they were at the height (or depths) of the Great Recession, but that doesn't mean they're optimistic about it.
In fact, their pessimism is increasing.
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That's according to the Wells Fargo/Gallup Investor and Retirement Optimism Index, which fell to +40 in the first quarter, the lowest it has been in nearly two years.
While the index remains well above the negative scores seen during the last recession, it is down 19 points from +59 in the fourth quarter of 2015 and down 30 points from +70 last May.
If you're wondering why, you're not remembering the volatility in the stock market—investors certainly are.
Their optimism about the stock market took a hefty hit after the last bout of turbulence: the percentage of investors optimistic about the 12-month outlook for the stock market fell from 45 percent last quarter to 32 percent.
The overall index fell more among nonretirees than among retirees. But nonretirees, those cock-eyed optimists, still view the future as a tad rosier, at +41, than retirees do, at +35.
The percentage of investors feeling confident in the stock market as a place to save and invest for retirement also fell, unsurprisingly; it dropped from 43 percent to 36 percent.
A sizeable number of nvestors are apparently coming to expect the worst when it comes to volatility, too.
When asked if frequent stock market volatility will become "the new, normal pattern in the years ahead" or if it represents "a temporary pattern," 40 percent opted to call it the "new normal" while 54 percent said it was "temporary."
Volatility is having a negative impact on many investors, with 39 percent agreeing with the statement that market volatility is making their life stressful. This breaks down to 46 percent of retired investors and 36 percent of nonretired investors.
Another source of stress for investors is the Great Recession's lingering impact, with 70 percent of respondents saying they know someone whose financial situation hasn't recovered since the economic downturn; 37 percent say their own financial situation has not recovered.
And along with that stress from volatility comes doubt in the adequacy of retirement savings.
Only 39 percent of retired investors are now "very confident" that they have enough savings to last throughout retirement; that's fallen over the last year from 47 percent.
And nonretired investors aren't all that sanguine about their preparations, either; just 23 percent, down from 28 percent, say they are very confident they will have enough savings for retirement at the time they choose to retire.
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