401(k) participants uninterested in retirement planning
More than half (52%) of 401(k) participants surveyed by
Charles Schwab say they lack the time, interest or knowledge to manage their
401(k) portfolios. Nearly three-quarters (73%) spend less than eight hours a
year managing their 401(k) plan account. Many (56%) do not review plan-related
educational materials they receive.
An interesting finding to consider in light of upcoming
participant fee disclosure rules is that nearly one-third of respondents do not
know if they pay any fees for their 401(k) plans. Of the 70% aware that they
pay some fees, 95% are unaware of investment fund operating expenses, and 67%
of plan administration fees.
A significant majority (83%) of those surveyed say they are
interested in receiving professional investment management from their employer.
However, this interest does not translate into action, based on Schwab data
showing that just one in 10 participants actually avail themselves of 401(k)
investment management advice when it is offered.
A majority of respondents (61%) have calculated the savings
they believe they will need for retirement. Among this group, 84% were
confident that their savings would last.
Respondents reported, on average, they feel they need
to bridge an eightfold gap between how much they have saved and how much
they calculate they will need in retirement.
Findings are from an online survey, conducted last August
and September by Koski Research, which gathered 1,005 responses from a national
representative sample of U.S. workers who were participating in their company’s