When asked the same question last year, 21% fewer households (1.9 million) reported a delay in their retirement plans. Though this rise could partially be due to the increase in the number of high-income households in the U.S., the survey revealed that of those having to delay their retirement, the percentage of those expecting a delay of eight years or more has doubled from 11 percent to 22 percent in the past year.

Most Investors Are "Staying The Course"
While nine out of ten respondents said their retirement portfolios have decreased in value, 34 percent say they plan to increase the money they have invested in retirement funds such as 401(k)s and IRAs. "Many investors are realizing that retirement accounts carry both a short-term and a long-term benefit," said Baie Netzer, Quicken investments editor. "The immediate reduction in taxable income combined with long-term compounding of returns makes a 401(k) account one of the best savings vehicles out there." Investors have also discovered the risk and return benefits of asset allocation: 70% have rebalanced their portfolios in the last year, and 68% report they are not pulling out of stocks or bonds, but are staying the course. Despite this long-term commitment to equities, 73% of respondents feel it will take at least three years for their portfolios to reach the levels they saw at the peak of the bull market.

Bulls vs. Bears: A Dead Heat
In the course of rebalancing, 49% of those surveyed say they are making some changes to their investment and retirement strategies. Of those making changes, Bulls and Bears are almost equally weighted, with 23% increasing their cash position, and 24% reducing their cash holdings. In addition, investors are slightly more willing to hold stocks in tax-advantaged retirement accounts, indicating a belief in the long-term returns of equities.

Scandals Create More "Do-It-Yourselfers"
It can be derived that corporate accounting scandals and stock analyst investigations of the past year have also led investors to rely more on their own research to make sound investment decisions. When making these decisions, 58% of investors consult newspapers, magazines or newsletters - while only 30% consult their stockbrokers. Additionally, 70% of investors say their confidence in financial experts has declined "a lot" or "somewhat."

Do You Know How Much You're Really Worth?
The Quicken survey revealed that a quarter of high income Americans don't know their net worth. At the same time, respondents who know their net worth are twice as likely to say their retirement will be delayed. This suggests a strong positive correlation between knowing your net worth and accurately calculating how much you will need to retire. In addition, twice as many investors who know their net worth have shifted, or plan to shift, their investments away from stocks/bonds. "The take away here is: what you don't know CAN hurt you," said Netzer. "The smarter you are about your complete financial picture, the more apt you are to make better investment decisions - and ultimately be prepared for hard times."

Healthcare Industry Posts High Potential; Energy Sector Jumps to Second Place
For the second year in a row, the highest percentage (48%) of high-income investors rank the healthcare sector as having either "high" or "extremely high" potential for growth over the next six months. In a change from last year, the second highest- ranked sector is now the energy sector (43%), up from fourth place (31%) last year. While it received similar ratings year-over-year (41% this year vs. 42% last year), the technology sector dropped from second to third place. Telecommunications ranked fourth (32%) this year, compared to third (33%) the previous year.

Other Noteworthy Findings

• Elderly Hit Hardest: 21 percent of those delaying retirement are between the ages of 55 and 64, with 18 percent being 65 or older. By comparison, only eight percent of those ages 35-44 and 15 percent of those 45-54 years of age expect to have to delay retirement.
• Women Remain Cautious: Women (58%) are less likely than men (46%) to make changes to their investing and retirement strategies.

NOTE TO EDITORS:
Survey Methodology: The fourth annual Quicken Fiscal Literacy Survey was conducted by International Communications Research from January 24-27, 2003. The survey was conducted among a random sample of 500 Americans with an annual household income of $75,000 or more and who actively manage their investments. The margin of error was +/- 4.4%. Last year's survey was conducted from December 14-18, 2001 using the same parameters. The margin of error was +/- 4.38%.