A recent Gallup poll drew lots of media attention with the news that younger workers were so battle-scarred by the Great Recession that they no longer trust stocks as a safe place to park their retirement investments.
Just 27% told Gallup they own stocks or mutual fund shares, down from 33% in 2008.
Wait a minute, said Fidelity Investments, the nation’s largest 401(k) provider. Fidelity’s analysis of its own funds found that 84% of Millennials’ retirement savings are invested in equities. The company credits smart use of target-date funds, which emphasize stock-heavy portfolios when workers are young and gradually transition to less-risky investments as they age.