Survey Looks At Retirement Plan Preferences

The top features for a defined contribution plan member was “provides the ability to save an amount of your choosing for retirement through automatic deductions from a paycheck.” The researchers found that 64% of the defined contribution plan members rated that feature very important.

Other features that were very important to more than half of the defined contribution plan members were portability of plan assets; guaranteed lifetime retirement income; guaranteed lifetime retirement income both for workers and their spouses; and a chance to choose investment options that offer different possible levels of risk and return.

Some employers and benefits consultants once promoted 401(k) plans and other defined contribution plans as vehicles for encouraging employees to invest in employer stock and align their interests with those of other company shareholders.

But only 9% of the defined benefit plan members said a chance to invest in employer stock was very important, and only 11% of the defined contribution plan members valued a chance to invest in employer stock. An opportunity to invest in employer stock was the least popular feature for both types of survey participants.

A full copy of the survey report is on the Web at //www.soa.org/sections/Retirement/retirement_risk_report/PreferencesReport2-5_FINAL_V2.pdf