Employees who say they use advisory services offered to them in their 401(k) plan have a distinctly more positive outlook about their future retirement versus those who do not, according to an analysis of data from the recent Mercer Workplace Survey http://www.mercer.com/2012-mws-summary. Nearly one-fifth (18%) of survey respondents say they engage with an online or in-person advisory service in their 401(k) plan. Although a relatively small percentage of the base, these participants are much more likely to feel that they will have enough money for retirement, can live as well or better than when working and will not have to delay retirement (See Figure 1).
Figure 1: Expectations in Retirement: which of these statements below do you expect will be true for you in retirement?
Those who engaged with in-plan advice in the past year
|I will have enough money to pay for health care||35%||49%|
|I will live as well or better as I did when I was working||29%||40%|
|I will be able to help out younger family members with tuition or housing expenses||15%||26%|
|I will be able to leave money to family members or charities||23%||33%|
|I will be in a position to travel extensively||16%||24%|
|I will run out of money||21%||17%|
|I will have to reduce my standard of living||44%||34%|
|I will consider delaying retirement||44%||34%|
|I will work at least part time in retirement||52%||38%|
Source: Mercer Workplace Survey
This year’s Mercer Workplace Survey also revealed that awareness and availability of in-plan investment advice is high; in fact 79% of participants said that their plan offers some type of advice (online, in-person/telephonic, or both) up from 72% in 2011.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts