NU Online News Service, March 17, 2003, 5:34 p.m. EST – Many U.S. workers want more help from employers with saving for retirement, according to results of a new survey from KRC Research, Washington.
The researchers who conducted the survey, which was sponsored by CIGNA Corp., Philadelphia, found that 39% of the 750 401(k) plan participants interviewed failed to contribute the maximum amount because they believed they were contributing all that they could afford to put in.
But more, 47%, said they were contributing less than they could because they felt confused or apathetic, or because they felt their situation was futile.
Sixty-one percent of survey participants said they were aware of the increases in contribution limits in the Economic Growth and Tax Relief Reconciliation Act of 2001. But only 29% of the participants said they intended to take advantage of the increases.
If the federal government goes ahead with proposals to create new savings vehicles, such as Employer Retirement Savings Accounts, 76% of the survey participants said they would trust their employers to manage the accounts.
Seventy-two percent of the participants trusted mutual fund companies to manage the accounts, and seventy-four percent trusted personal brokers. Only 45% trusted the government.
The researchers also found that 75% of the participants would trust individualized retirement planning advice from their employers and 71% would trust specific investment advice from their employers.