401(k)s get to sit with the cool kids; they’re really popular. In fact, a recent survey finds the vast majority of investors who participate in a 401(k) view it positively.
Nine in 10 investors say they are satisfied with their own 401(k) plan as a tool for saving for their retirement, including 44 percent who are “very” satisfied and 47 percent who are “somewhat” satisfied.
Just 9 percent are somewhat or very dissatisfied, according to the latest “Wells Fargo/Gallup Investor and Retirement Optimism Index” survey.
Satisfaction is just as high among those with less than $100,000 invested (90 percent) as it is among higher-asset investors (93 percent), indicating what Gallup refers to as the 401(k)’s “egalitarian appeal.”
As to where 401(k) participants turn when looking for 401(k) help, the survey found the following:
- A majority of investors younger than 50 (58 percent) versus a third of those aged 50 and older (35 percent) use online investment calculators.
- Older investors are twice as likely as those aged 18 to 49 to consult a financial call center (21 percent vs. 10 percent, respectively).
- Younger investors (50 percent) are also much more likely than older investors (30 percent) to turn to family or friends for allocation advice.
Roughly two-thirds of employed investors who have a 401(k)-type plan said they can manage it on their own while 35 percent said they need advice. The majority turn to a personal financial adviser, but many—particularly younger investors—also identify Internet research and online investment tools as helpful. Although financial call centers are commonly available, relatively few investors take advantage of them for allocation advice, and those who do tend to be older.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.