The area where 401(k) participants say they could most use help is understanding how much they’ll need to save for retirement, according to a nationwide survey of 1,000 401(k) plan participants from Schwab Retirement Plan Services
(Charles Schwab ).
HR Technology News: New Data From RippleMatch Helps Employers Understand The COVID-Era Gen Z Job Seeker
“You want every dollar working as hard as possible for you when it comes to retirement savings”
Over two thirds (68%) of participants gave an estimate of how long their retirement savings will last, with the average being 24 years. The remaining 32% say they do not know how many years their retirement savings might last, and the level of uncertainty is higher among women (40%) than men (25%).
HR Technology News: TecHRseries Interview with Troy Thibodeau, Chief Marketing Officer, Ascentis
On average, participants in the study plan to retire at age 65 and estimated they need to save $1.9 million for retirement. The top five areas they would like help with are:
- Calculating how much they need to save for retirement
- Anticipating tax expenses
- Determining their retirement age
- Creating an income stream in retirement
- Receiving specific advice on how to invest their 401(k)
“Every step of the way, retirement planning is a constant balance between saving and spending. In the years before retirement, we have to meet our day-to-day financial commitments while still keeping an eye on our long-term savings goals. Once we get to retirement, we want to be able to enjoy our hard-earned savings, but also make them last, likely over a period of decades,” said Catherine Golladay, executive vice president and head of Workplace Financial Services at Charles Schwab & Co., Inc. “Talking to a financial professional can provide important clarity regardless of where you are on that journey. Even if you think your financial situation doesn’t warrant outside help, having that conversation with a professional is a valuable step to take.”
HR Technology News: Terra Dotta Announces SAP Concur Partnership to Expand Domestic and Global Travel Management Footprint