According to a NYLIM press release, the 2006 survey of 8,958 participants on NYLIM Retirement Plan Services’ platform found 60% of participants agree they are making correct investment decisions in their 401(k) account. At the same time, only about half of all participants said they feel they know how much money they will need in retirement.
Less than 40% said they believe they are in a good position to meet their financial goals when they retire, the press release said.
Data from the survey showed different participant populations, even within the same company, are interested in significantly different types of retirement planning tools. More than 40% of participants surveyed said they would like someone else to manage their 401(k) account with their input, while 39% agreed with the statement “I tend to rely on advice from a professional financial adviser when making investment decisions about my 401(k) retirement account.” Forty-four percent disagreed with this statement and the rest were indifferent.
In addition, 75% of participants surveyed said they enjoy learning about investing and 68% said they closely monitor the value of their 401(k) accounts. More than half of those surveyed agreed that “I am willing to take on substantial risk if it could mean a higher return.”
“This research shows us several things – first, that by emphasizing a retirement account balance instead of the amount necessary to retire in comfort, we have all been putting the emphasis on the wrong idea,” said Don Salama, senior managing director of NYLIM Retirement Plan Services, in the news release. “Many of these participants monitor their investments carefully, are prepared to take some risk and feel they’re making good decisions, but are still worried they won’t have enough for the long haul.”