Employees Concerned About Retirement Security

March 18, 2002 (PLANSPONSOR.com)-The Enron fiasco has caused more employees to consider the security of their 401(k) and retirement plans, a new survey finds.

According to a new survey from Insight Express, an online market research firm, 45% of employees are more concerned about the security of their plans since hearing about Enron.
Meanwhile, 33% would consider purchasing some kind of retirement insurance to protect their investments from situations similar to the Enron case.  At the same time, 4 out of 10 employees said they would welcome reassurance from their employer about the security of their plans.

However, the survey also found that that only 1% of employees trust employers most to provide sound financial guidance.

Instead, most employees have high expectations of plan providers and financial advisors who they trust to take the appropriate steps to make them feel secure about their investments.

In fact, the survey found that employees would like 401K/retirement funds providers to:

  • be held responsible for their investment recommendations- 67%
  • quickly communicate potential issues and risks regarding investments- 59%
  • report suspicious practices of companies to the government- 59%
  • conduct due diligence on their recommendations- 43%
  • have no involvement in the investment opportunities they recommend- 31%