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Americans say the 401(k) is the “best retirement savings vehicle,” followed by the individual retirement account (IRA) and a savings account. Thirty-four percent of Americans who have a 401(k) available through their employer are saving between 3% and 5% of their income in their 401(k) plan, 32% are saving between 6% and 10%, and 12% are saving 11% or more for their retirement. Those contributing to a 401(k) report more companies are offering the match (77%) this year versus 66% a year ago. Although most 401(k) investment options include investment expenses, a majority (82%) of Americans with a 401(k) available through their employer say they do not pay an investment fee on their 401(k) plan. Three-quarters of Americans (74%) say employers should provide personal advice to help employees manage their retirement savings; 67% of those who identify themselves as Republican support advice versus 86% who identify as a Democrat. Sixty percent of Americans say plans should automatically increase contribution rates by 1% each year; 56% of Republicans agree with this versus 72% of Democrats. Fifty-nine percent of Americans say plans should automatically enroll employees in the plan; 55% of Republicans support auto-enrollment versus 77% of Democrats. Middle class Americans say they will need a median of $300,000 to support them in retirement, but to date, have only saved $25,000 (median). When asked what percentage of their nest egg they expect to withdraw annually in retirement, the median withdrawal predicted by middle class Americans is 10%. Many experts say withdrawals should be maintained at 3% to 4%.
Americans say the 401(k) is the “best retirement savings vehicle,” followed by the individual retirement account (IRA) and a savings account. Thirty-four percent of Americans who have a 401(k) available through their employer are saving between 3% and 5% of their income in their 401(k) plan, 32% are saving between 6% and 10%, and 12% are saving 11% or more for their retirement. Those contributing to a 401(k) report more companies are offering the match (77%) this year versus 66% a year ago.
Although most 401(k) investment options include investment expenses, a majority (82%) of Americans with a 401(k) available through their employer say they do not pay an investment fee on their 401(k) plan.
Three-quarters of Americans (74%) say employers should provide personal advice to help employees manage their retirement savings; 67% of those who identify themselves as Republican support advice versus 86% who identify as a Democrat.
Sixty percent of Americans say plans should automatically increase contribution rates by 1% each year; 56% of Republicans agree with this versus 72% of Democrats. Fifty-nine percent of Americans say plans should automatically enroll employees in the plan; 55% of Republicans support auto-enrollment versus 77% of Democrats.