One out of five U.S. investors now expect to delay retirement, and a majority report their investment portfolios have less value now than two years ago, according to a soon-to-be-released UBS Index of Investor Optimism special report.

Based on a January 2002 poll with 1,001 non-retired American investors conducted by the Gallup Organization, “Retirement Revisited – 2002” is a follow-up to UBS’s 1998 landmark study.

The 1998 report debunked long-held perceptions about retirement, revealing that investors no longer regard their golden years simply as a time to stop working and enjoy life — but instead an opportunity to actively pursue the lifestyle and work of their dreams. While this view of retirement continues, the new report uncovers a major shift in investors’ expectations about when they will retire; how comfortably they will live in retirement; and the impact the recession is having on their investments and retirement planning.

According to the new study, the expected retirement age is now 63.8 years, up from 62.9 in June 1998. Notably, 19% of all investors say they will consider retiring at a later date because of current economic conditions, and anticipate they will delay their retirement by 4.4 years on average.

In fact, nearly one-quarter of investors believe the sluggish U.S. economy will cause them to live less comfortably in retirement than originally planned. The number of investors sharing this view increases significantly with age. The average monthly income among non-retired investor households dropped to $6,216 in January 2002 from $6,899 in June 1998.

“The challenging economic environment and volatile financial markets have had a dramatic impact on investors and their retirement planning,” said Mary Farrell, UBS PaineWebber senior investment strategist. “As a consequence, investors at all life stages should regularly review their individual retirement plans, making changes to their portfolios to match their goals and help them achieve financial security.”

When asked about their personal retirement planning, the majority of those surveyed, 70%, say they have developed a financial plan to reach their investment goals, up from 61% in 1998.