April 28, 2011
--- More than seven in ten 401(k) plan
participants said they do not pay fees to plan
providers in a recent AARP survey. ---
Less than a quarter (23%) said they do pay fees, and less
than one in ten (6%) said they do not know whether or not they
pay fees, according to AARP's findings.
About three in five (62%) are unaware of how much they are
paying in fees for their plans, and almost one-third (32%) report that
they do not feel knowledgeable about the impact that fees could have on
their retirement savings.
However, about four in five (81%) believe that the fees
charged for investments are very important or somewhat important in
decisions about their 401(k) investments.
Other findings include:
-
While most plan participants (63%) say they have
contributed money to their 401(k) plan, about one-fifth (22%) have
withdrawn money or received payments from their 401(k) plan.
-
Almost two-thirds (64%) stated that they prefer to make
their own decisions about saving and investing. Some respondents reveal
that they have taken steps to learn more about their investments such
as using the summary information or prospectuses about mutual funds or
consulting with a personal financial adviser.
-
When respondents were asked how confident they are about
having enough money to live comfortably throughout their retirement
years, almost three-quarters (74%) stated that they are very confident
or somewhat confident.
-
Most respondents (64%) report that they have tried to
calculate how much money they will need to have saved by the time they
decide to retire so that they may live comfortably in retirement.
The survey was conducted from December 14-30, 2010 by Woelfel Research, Inc. among a sample of 803 U.S. residents
ages 25 and over who are 401(k) plan participants.
A full survey report can be downloaded here.
Rebecca Moore