More than three-quarters of Americans are confident that their defined contribution (DC) plans will help them meet their retirement goals, according to a survey conducted by the Investment Company Institute (ICI) and encapsulated in the report, “Americans Views on Defined Contribution Plan Saving, 2018.”
Eighty-three percent of households owning DC accounts or individual retirement accounts (IRAs) are confident they will meet their retirement goals.
Ninety-one percent DC-owning individuals say these plans help them think about the long term and make it easier to save. Eighty-five percent say the tax treatment is a big incentive to contribute to a DC plan. Ninety-four percent say it is important to have a choice of investments in their plan, and eighty-three percent say they appreciate the wide range of offerings in their plans.
Nearly nine in 10 Americans want to preserve tax incentives for retirement savings; eighty-eight percent disagreed with removing the tax advantages, and another 88% disagreed with lowering contribution limits.
“DC plans are a popular and powerful savings vehicle for American workers, offering them flexibility, control and a long-term perspective,” says Sarah Holden, senior director of retirement and investor research at ICI. “The discipline of saving out of each paycheck makes it easier to build a retirement nest egg and eases concerns about short-term market fluctuations.”
ICI’s findings are based on a survey of 2,000 Americans.