Note from the Publisher: According to a recent study by Wells Fargo and Gallup, an increasing number of retirement investors are now AWARE of robo-advisors, however, only 5% actually USE them. This percentage will no doubt grow as younger investors come into the market and existing investors become more comfortable and familiar with the technology.
“U.S. workers are feeling moderately better about the U.S. economy in general, and about their retirement prospects in particular, according to the latest Wells Fargo/Gallup Investor and Retirement Optimism Index survey………
While the study claims respondents were fairly bullish on the U.S. stock market, and their prospects for higher household income, Wells Fargo added another category into the retirement optimism mix – robo-advisors. The survey described robo-advisors as “digital advisory services that use computer algorithms to select stocks and other investments for people based on the information people provide about their risk tolerance and goals.”
Wells Fargo says that 45% of retirement investors are now aware of robo-advisor digital services, even though 5% have actually used robo-advisors. Yet both those figures are expected to rise.
‘Automated investing tools are still in their infancy, but we expect awareness to grow quickly,” says Devon McConnell, head of digital for Wells Fargo Advisors. “Similar to online shopping ten years ago, there is an adoption curve and we anticipate the same pattern will unfold as more investors become familiar and comfortable with these new ways of investing.'”