not up to speed on critical components of 401(k) plans, Fisher Investment
401(k) Solutions found in its 401(k) IQ in the Workplace Quiz.
percent of respondents failed the quiz, missing three or more of nine
questions. While 88%
understand matches, 76% do not know what a mutual fund is and 43% don’t know
how much of their salary they should save for a comfortable retirement. A full
two-thirds (66%) are not confident in selecting investment options, and 24% can’t
remember what they selected for their 401(k) investments. Forty percent are not
confident they will reach their retirement goals.
Twenty-five percent do not fully trust their 401(k) provider, and 33% ask their
family and friends for guidance on how to invest in their 401(k) plan. Only 20%
of women make monitoring the progress of their 401(k) plan a regular priority.
“These results point to a larger issue that I see regularly with clients,” says
Nathan Fisher, managing director with Fisher Investments 401(k) Solutions. “People
tend to understand the big picture value of 401(k) plans, but when you start to
get more specific, they quickly struggle, which is a huge problem.” This can
result in people investing improperly and not saving enough, Fisher says.
KRC Research conducted the online survey of 1,013 401(k) participants in
October for Fisher Investments.