Workers are more likely to get help changing their oil then they are to get professional investment advice on their 401(k), according to a new survey from Schwab Retirement Plan Services.
That’s not to say those workers don’t know the importance of their 401(k) – 87% of those surveyed say that the 401(k) is a “must-have” benefit, more than disability insurance, life insurance, extra vacation days or the ability to telecommute.
But the nationwide survey of 1,000 401(k) plan participants found that they were much more likely to have someone change the oil in their car (87%), help them landscape (32%), or help with their taxes (36%) than have someone help them choose their 401(k) investments (24%).
“Most people see a doctor when they’re sick or a mechanic when their car isn’t running, so why not seek professional help to manage something as important as their 401(k)?” said Steve Anderson, head of Schwab Retirement Plan Services, in a statement. “In many cases, there is a significant difference between how much people need for a comfortable retirement and what they are actually saving.”
Previous reports have found that most workers aren’t saving enough. Numbers from the Employee Benefit Research Institute show that 64% of workers between the age of 55 and 64 have saved an amount equal to one year of income.
Moreover, 90% of those surveyed by Schwab said they would be relying on themselves for the money needed to live in retirement, with more than 60% are saying their 401(k) is the primary or sole source of retirement savings, not considering Social Security.