Featured Topics
Retirement Industry
Magazine Archive
Education/Advice
Where Do you Go for Financial Advice?
The survey found approximately 40% of respondents expressed uncertainty about the risk and return characteristics of common investments found in 401(k) plans, including international equity funds, stock index funds, and stable value funds. More than half of survey respondents admitted they do not know what target date funds (TDFs) are, or are not familiar with how they work. Approximately 67% know adjusting their investments over time is important, but only 30% say they know how to do this. In addition, 82% think it is important to know how to make retirement savings last a lifetime, but just 28% reported they know how to achieve this. “We believe the more we can help employers understand the reasons for the action gap, the better equipped they can be to help employees take steps to save more and invest more wisely,” said Kristi Mitchem, senior managing director and head of Global Defined Contribution for SSgA. The bi-annual SSgA Defined Contribution Investor Survey, conducted jointly with the Boston Research Group, surveyed more than 1,000 401(k), 403(b), 457 and profit sharing plan participants1 to identify their behaviors and perceptions about saving and investing.
The survey found approximately 40% of respondents expressed uncertainty about the risk and return characteristics of common investments found in 401(k) plans, including international equity funds, stock index funds, and stable value funds. More than half of survey respondents admitted they do not know what target date funds (TDFs) are, or are not familiar with how they work.
Approximately 67% know adjusting their investments over time is important, but only 30% say they know how to do this. In addition, 82% think it is important to know how to make retirement savings last a lifetime, but just 28% reported they know how to achieve this.
“We believe the more we can help employers understand the reasons for the action gap, the better equipped they can be to help employees take steps to save more and invest more wisely,” said Kristi Mitchem, senior managing director and head of Global Defined Contribution for SSgA.
Rebecca Mooreeditors@plansponsor.com