Reports of workers who say they know how much they need to save for retirement may not be entirely accurate. A survey by Diversified, a retirement plan provider, found that over one-third of defined contribution plan participants guessed at how much they need to save.
Diversified surveyed nearly 3,400 people and found 34% “guessed” or “made up” an estimate of how much they would need for retirement. Just 30% have worked with a professional for help setting their goals.
“There’s no reason to guess,” Patricia Advaney, senior vice president of participant solutions for Diversified, said in a statement. “With the abundance of help available—from online tools to guidance to advice—it’s much easier today for plan participants to calculate a retirement income goal, then take appropriate actions to get there.”
Nearly 70% of respondents said their workplace plan was their only or primary account for retirement savings. More than half said they had less than $100,000 saved. More than a third said they had less than $50,000.