Rising Home Internet Use Allows More Plan Info Online

August 29, 2001 (PLANSPONSOR.com) - US consumer demand for Internet connections continues to grow, allowing more plan sponsors to opt for retirement plans with online 401(k) account access.

According to a Gartner Dataquest survey from June 2001, 65 million US households are using the Internet, an increase of 8.4 million users since the group’s previous survey in November 2000.

This means that 61% of US households are online and 90% of these online households say they are likely to continue their Internet subscription, despite belt-tightening brought on by economic woes, the survey reveals.

Indeed, analysts at Dataquest see no indication that this demand will abate over the next 12 months.

High-speed Internet access has achieved a penetration rate of a little less than 25% of online households, with half of these cable modem subscribers.

However, nearly 20% of dial-up households said they expect to subscribe to some form of high-speed connectivity by the middle of next year.