A new 401(k) survey from Fisher Investments 401(k) Solutions, shows a lack of knowledge among Americans when it comes to their 401(k) plan.
71 percent of respondents to the survey failed Fisher’s 401(k) IQ in the Workplace Quiz, missing at least three of the nine basic questions.
Only 24 percent of respondents could define a mutual fund and only 43 percent knew the percentage of their salary they should save for a comfortable retirement.
A majority (66%) of respondents are not confident in choosing 401(k) investment options. 25% of respondents claim they were not involved or can’t recall how they picked their plan investments, and over 40 percent are not confident that they will reach their retirement goals.
What does this tell us? No matter how much providers try, there is still a big knowledge gap by plan participants and plan providers need to continue to be vigilant in educating plan participants about their plan and maybe use this survey as a talking point as to whether participants should be offered investment advice.