It goes without saying that we all know the importance of retirement and establishing financial security for the golden years. Even so, baby boomers approaching retirement are running into unexpected financial surprises including increasing costs of health care. This should be a lesson to our youth to save early and maximize investments.
Charles Schwab recently surveyed 1,000 participants regarding their 401(k) and views on retirement and benefits. Not surprisingly, 87 percent of candidates looking for a new job feel that a 401(k) plan is a “must-have”. What does come as a surprise is that most people spend more time researching a new car or vacation than researching 401(k) investment choices.
The survey reveals that many participants feel considerable uncertainty when it comes to their 401(k). Over 40 percent of participants said “I don’t feel I know what my best 401(k) investment options are.” Unfortunately 60 percent of respondents also indicated that approaching retirement would most likely prompt them to seek help with retirement planning.
If you are offering a 401(k) plan to employees it’s important to offer guidance and education. Consider offering professional investment consulting services to employees and most importantly encourage your employees to start saving early! If you have questions regarding pension, retirement, and 401(k) we’re happy to help answer them, just ask.
Click to read the entire Charles Schwab 401(k) participant survey.