Six in 10 workers who participate in a 401(k) or other DC plan said they would likely achieve a secure retirement, and more than three-quarters believe all workers should have access to a retirement savings plan. Prior LIMRA research found saving for retirement is a top financial priority for 64% of Americans.
The current research found 78% of workers recognize their personal responsibility for saving for retirement, yet half report they do not know how much they need to save to achieve a secure retirement.
“In a world of conflicting information and competing financial priorities, workers are getting the message on the importance of saving for retirement. Yet, despite the large amounts of money spent on participant education, there is still a significant percentage of workers who do not know how much they should be saving, and many are not confident that they will achieve their desired retirement lifestyle,” LIMRA says. “Through the use of technology, the industry could examine new ways to translate account balances and savings rates into retirement income projections. This change in focus could help participants better understand the future impact of present day saving.”