Posted in: Benefits, Employment, In this week's e-newsletter, Latest News and Views
Despite the best efforts of HR and benefits pros across America, the working public remains for the most part woefully out of step with projected needs required to fund their own retirement.
Many people are relying on 401(k) savings plans to support them in their post-working years — but they’re not taking advantage of opportunities to manage their own money, and failing to save enough to meet what they admit will be required when it’s time to retire.
A recent survey of more than 1,000 employees who participated in 401(k) plans conducted by Koski Research and commissioned by Schwab Retirement Plan Services, showed:
- 52% of employees said they didn’t have time and lacked necessary interest to properly manage their account
- 73% of those who did manage their accounts spent less than 8 hours a year doing so
- 56% ignore the educational materials they receive about their plans
- 70% are aware they pays fees in connection with their 401k account; but
- 95% didn’t know details of investment fund operating expenses and 67% couldn’t identify the portion they paid in plan administration fees.
It’s not as if this news has fallen on deaf ears among HR and finance execs.
Another recent survey done by CFO Research Services for Schwab, detailed outreach efforts:
- 54% of companies said employees enrolled in 401k accounts weren’t taking full advantage of the plan’s features
- Efforts put forth by employers to better engage employees included: printed materials — 93%, interactive tools — 93%, and workshops –81%.
It’s likely a hybrid made up of automatic enrollment opportunities, scheduled annual savings increases and ways to lower costs for participating employees.