Workers appear to recognize they are behind on saving for retirement: only 30% of survey participants said they expected their savings to last through retirement.
Yet, the results of the J.P. Morgan Asset Management survey indicate that many participants are not confident in their ability to manage their retirement accounts or are just not interested. More than half (52%) said they don’t have sufficient talent to plan for retirement, and almost half (44%) reported that they are receiving more 401(k) plan information than they can absorb.
Retirement planning knowledge is lacking
Survey participants were asked about confidence in their knowledge of retirement planning and investing. Only 22% indicated that they know into which 401(k) investment options they should invest their contributions. About one-fourth felt they knew how to allocate their contributions across the plan’s options.
Participants want professional advice
Nearly two-thirds of respondents want more detailed advice on how to save in their 401(k) plan, yet 65% said they don’t take the time to read the investment information they receive.
About 52% would rather have an expert manage their account. Almost one in five (17%) would like to delegate retirement planning and investing entirely to a financial professional.
Income projections can help
Providing retirement income projections to plan participants may encourage them to save more to reach the desired 75%-to-100% pre-retirement income replacement ratio recommended by many experts. One study found that those who receive projected retirement income information increased their income replacement by 16%.