“The overwhelming majority of workers are frightened about the declining value of their retirement accounts, and nearly half intend to change their investment strategy if the stock market remains weak at the end of the year, a new survey shows,” writes David Johnston in today’s Wall Street Journal.

“The survey, conducted for Cigna late last month and scheduled for release today, offers a window on how investors, already reeling from the collapse of technology stock prices, are reacting to the broader market decline and the weakening economy after the Sept. 11 attacks.”

“Since midyear, workers have been shifting away from stocks, whose prices have fallen sharply, while putting more money into bonds, whose prices have risen.”

“The terrorist attacks accelerated these trends, according to data from Lipper, the fund-tracking company. In July and August, investors moved more money out of stock funds than they moved in, and in September, a record $32 billion flowed out of stock mutual funds.”

“If the market remains down at year-end, the Cigna survey found, one in six workers plans to switch to what he or she sees as more conservative investments, including bonds.”

“Nearly as many workers said they planned to save more, apparently to offset declines in the value of their portfolios. One in 10 said they would invest more aggressively, and one in 20 said they would quit saving for retirement.”

“A third of those surveyed were unaware that the maximum a person can save in a tax-favored retirement account begins to increase next year, with special provisions for workers 50 and older.”

“The results were tabulated from a survey of 1,000 workers and 504 corporate personnel executives.”