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In Practice November 29, 2006
Participants Not Confident in Investing Abilities
Seventy-three percent of plan participants surveyed said they are not overly confident in their investing abilities, according to The Scarborough Group, provider of investment advice and allocation management for 401(k) plan participants.
Reported by Rebecca Moore
In a press release, The Scarborough Group said the survey also found that 72% of participants would prefer to use personal management for their 401(k) plan, meaning an adviser provides investment advice and also manages their account assets. On the other hand, only 20% of participants said they would prefer an internet-based form of advice, and only 4% of participants said they would trust advice generated from an internet-based application, down from 5% in 2001.
The survey of 664 plan participants across the US also asked about participants’ confidence in Social Security benefits. Seventy-five percent of those surveyed said they are “somewhat” or “very” concerned about Social Security’s viability for the long-term. Only 8% said they are “somewhat” unconcerned or “not at all” concerned, according to the press release. J. Michael Scarborough, president of The Scarborough Group, pointed out in the press release that 57% of those surveyed were age 51 or older.
The Scarborough Group’s Web site is www.401kadvice.com.