Most importantly, the survey found that investment confidence nearly doubles when workers have the help of a financial professional. Approximately one-third (32%) of survey participants expressed confidence in making the right 401(k) investment choices based on their own ability, compared to 61 percent if they also had the help of a financial professional.
“Getting more workers engaged in professional 401(k) advice should be a top priority for employers. We’ve seen the positive impact it can have on both behaviors and outcomes,” said Anderson. “At Schwab Retirement Plan Services, Inc., participants who used third-party, professional 401(k) advice tended to increase their savings rate, were better diversified and stayed the course in their investing decisions,” he noted.*
Other findings show respondents are engaged and place a priority on their 401(k):
- Save it, don’t spend it: Given a choice about how to use a $5,000 bonus, nearly two-thirds (64%) would save it in their 401(k) rather than take the cash now. Forty-eight percent immediately chose the 401(k) route and an additional 16% chose the 401(k) after tax consequences were explained.
- Post-crisis recovery: Seventy-four percent of respondents said their 401(k)s have recovered from the financial crisis about as fast or even faster than expected.
- Check the index: Nearly three-quarters (74%) would rather pay low investment fees for index funds than pay higher fees for actively managed funds that could potentially outperform the market, but may also carry greater risk.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV