According to the third annual Quicken Fiscal Literacy Survey, which polled Americans with total annual incomes of US$75,000+ and who actively manage their investments, about 1.9 million households will have to delay their retirement because of recent economic and market performance.

Of those pushing back retirement, 25% reported that they will have to work an extra five to seven years in order to retire comfortably. “It’s not surprising that people have lost money, but nearly one-third of those we surveyed have had their portfolio decline by 25% or more,” said Baie Netzer, investments editor for Quicken.com. “That decline is likely to have a big impact on their planned timeframe for retirement and on their desired lifestyle.”

The survey also reveals several fiscally conservative strategies that investors are using in response to the bear market to improve their retirement portfolios. The most popular strategy, employed by 42% of respondents, is to conserve wealth by increasing their cash position. An additional 36% of respondents have chosen to counter the economic downturn by increasing their low-risk investments. While numerous investors have increased the cash position in their retirement accounts, the majority of respondents have not changed their investment strategy for non-retirement accounts.

Nearly one in three investors are not monitoring their investment portfolios to avoid distress over short-term market fluctuations. An additional 25% have not changed their investment monitoring behavior since the end of the bull market. However, nearly one in five respondents have begun carefully monitoring their investments to take advantage of opportunity in the market, and 22% are carefully monitoring the market to minimize their losses and preserve their savings.

Retirement plans for high-income baby boomers (ages 45-54 years old) are the most significantly impacted, according to the survey. Nearly half (46%) report that the recession has caused them to delay retirement by three to four years with more than another third (34%) having to push back retirement by five to seven years.

The survey was conducted by International Communications Research from December 14-18, 2001. 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 +/- 4.38%.