Quick Read
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Americans willing to take big investment risks fell to 16% in 2024 from 20% in 2021, though investing participation barely changed.
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Risk appetite drops sharply with age: 23% of adults under 35 accept big risks, versus just 8% of those 55 and older.
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Overly conservative portfolios lose buying power to inflation, so matching money to when you need it beats relying on mood.
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Read More: Avoid these 13 retirement mistakes before they derail your future (sponsor)
A few rough years can change how much risk anyone wants to take. Since 2021, Americans have dealt with higher prices, pricier loans, and a stock market that didn’t move in a straight line. Many people have grown more careful with their money, and new survey data measures how many.
In the FINRA Foundation’s National Financial Capability Study, which surveys over 25,000 adults every three years, the share of U.S. adults willing to take risks with financial investments fell to 16% in the 2024 wave. That’s down from 20% in 2021. “Willing” here means people rated themselves an 8 to 10 on a 10-point scale, the top three spots.
Most people stayed in the market. The same study found 34% of adults held investments outside retirement accounts in 2024, compared with 35% in 2021. That means stocks, bonds, or funds in a regular brokerage account, outside a 401(k) or IRA. The share of Americans holding investments outside retirement accounts has barely changed, even as their willingness to take financial risks has declined.
The broader mood helps explain it. The University of Michigan’s consumer sentiment index, a monthly read on how upbeat people feel about the economy, was 48.1 in September 2026, down from 71.8 in November 2024. When people feel squeezed, they tend to play it safer.
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Learn 13 Major Retirement Mistakes and Ways To Avoid Them
One investment mistake could create big risks for your retirement. Many investors make the same critical errors: being too conservative, making big bets on “sure things,” or paying excessive fees. Any of those blunders can endanger your hard-earned savings.
Now you can learn the mistakes even experienced investors make (and ways you can sidestep them before it’s too late) with this new guide: 13 Retirement Mistakes and How to Avoid Them from Fisher Investments. Access your complimentary copy here (sponsor)
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Younger Adults Still Lean In, But Less Than They Used To
Age is the biggest factor, as FINRA found 23% of adults 18 to 34 are willing to take big risks, versus 18% of those 35 to 54 and just 8% of those 55 and older. That pattern tracks with time horizon, since younger people have decades to recover from a bad year.
