Americans Confident DC Plans Will Help Them Meet Their Retirement Goals

They also say that these accounts help them think about the long term and make it easier to save, an ICI survey found.

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.