The stock allocation retirees don't want (but need)

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Elijah Nicholson-MessmerFri, Sep 12, 2025, 4:05 PM 4 min readOlder Americans hold a bigger share of stocks than they'd like, according to the Center for Retirement Research — but that could work in their favor.Researchers say older Americans tend to be more pessimistic about the stock market than historical data suggests they should be. In surveys conducted by the University of Michigan Health and Retirement Study, which tracks roughly 20,000 Americans over time, about 60% of respondents on average expect the market to rise. Historically, however, the market has increased around 75% of the time.That view of the market extends into investors' desired stock allocations. In a CRR analysis of Americans ages 50 to 78 with $100,000 or more in investible assets, investors say they want to allocate 37% of their portfolio to stocks, on average.READ MORE:Most advisors admit they don't fully understand — or manage — cryptoWhy older Americans are stuffing their IRAs right nowThe big changes to HSAs and what they mean for planningMeet Financial Planning's 10 Rising Stars of 2025In practice, however, their actual allocations are higher. Other research on a comparable group of investors shows that 43% to 48% of their portfolios are invested in stocks, well above their stated preference.Researchers at the Center for Retirement Research say that dissonance could be driven by the growing popularity of target date funds."The low level of desired holdings is consistent with households' overly pessimistic views of stock returns, and the higher level of actual holdings likely reflects the default allocations in 401(k) plans — namely target date funds," the researchers wrote. "In short, people seem to be holding more equities than they want, but that pattern is probably good for them."Financial advisors tend to agree with that view."If they held what they preferred, they probably wouldn't get very far," said Ed Snyder, co-founder of Oaktree Financial Advisors in Carmel, Indiana. "This is why they need an advisor. To guide them to what they should be doing because the client doesn't really know what they should do."With living expenses and life expectancy on the rise, advisors say allocating more of a portfolio to equities is essential for near-retirees and retirees alike.That approach represents a distinct departure from previous norms, in which retirees largely moved their portfolios over to fixed income products with the goal of preserving their nest egg, according to Crystal McKeon, the chief compliance officer at TSA Wealth Management in Houston.CGU et Politique de confidentialitéPrivacy & Cookie SettingsMore InfoS&P 5006,591.24 +3.77 (+0.06%)Dow 3046,050.65 -57.35 (-0.12%)Nasdaq22,091.58 +48.50 (+0.22%)Russell 20002,413.22 -8.31 (-0.34%)VIX14.71 0.00 (0.00%)Gold3,688.40 +14.80 (+0.40%)PortefeuilleConnectez-vous pour accéder à votre portefeuilleSe connecterLes plus performantsQMMM QMMM Holdings Limited 115.37 +39.84 (+52.75%)IONQ IonQ, Inc. 55.14 +8.09 (+17.20%)RGTI Rigetti Computing, Inc. 19.31 +2.62 (+15.70%)HCM HUTCHMED (China) Limited 18.16 +1.79 (+10.96%)WBD Warner Bros. 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