Schwab is out with its latest survey of 401(k) participants and found four areas where they want help.
Specifically, the firm reports that calculating a retirement savings goal (44%), receiving advice on how to invest a 401(k) (39%), figuring out how to create income in retirement (35%), and anticipating taxes in retirement (35%) are all areas of interest and/o concern.
“The percentage of survey respondents who are very confident making their own 401(k) investment decisions has increased from 25% in 2019 to 40% in 2021 but still lags those who are very confident in making investment decisions with the help of a financial professional: 44% in 2019 and 56% in 2021,” the authors note.
Additionally, workers’ confidence about achieving retirement goals has risen sharply since last year and so has their appetite for financial advice. Schwab found that more than half (53%) say they are very likely to achieve their retirement goals, compared to 37% in 2020.
On average, plan participants in 2021 believe they need to save $1.9 million for retirement, the same amount as in 2020. Ninety-one percent say their financial health is very good or pretty good.
“We experienced tremendous stress in our work and home lives this past year that highlighted the importance of financial wellness and the value of trusted advice,” Catherine Golladay, head of Schwab Workplace Financial Services, said in the report. “Now, as we emerge from the pandemic, employers have an opportunity to engage employees with education, advice, and a range of other workplace benefits to help them build financial security and increase satisfaction at work.”
The online survey of U.S. 401(k) participants was conducted by Logica Research for Schwab Retirement Plan Services. The survey is based on 1,000 interviews, and respondents were actively employed by companies with at least 25 employees
FULL SURVEY RESULTS CAN BE FOUND HERE
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.
