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Deals & People June 24, 2010
Participants Taking Action to Make Up for Affects of Downturn
More than one-third (38%) of retirement plan participants have increased the amount they are saving for retirement following the market downturn of recent years, according to a survey conducted by Diversified Investment Advisors.
Reported by Rebecca Moore
Three out of five participants are saving 6% or more for their retirement, with 17% of these individuals saving more than 15% of their income. In addition, 20% of participants have moved into more aggressive investment options, a press release said.
Seventy percent of respondents had reviewed their retirement outlook in the past year. Fifty-five percent have used an online calculator, asked a financial adviser, or estimated on their own what they will need. Nearly half (49%) said they wanted help to establish a retirement income goal, an 18% increase over 2008, according to the announcement.
The use of the Web to manage retirement accounts has increased by 4% over 2008 figures. Among web users, 95% review their account balance, 73% review investment performance, and 49% change investment allocations.
When asked about their concerns for their retirement income needs, 43% want to have guaranteed monthly income for the rest of their lives, 35% want to get the best return on their investments, and 19% want to ensure that their retirement income keeps up with inflation.
Despite the financial hardship caused by the economic downturn, only 4% of respondents had taken a hardship withdrawal. However, 15% had taken a loan and 12% decreased the amount they are saving for retirement.
The 2010 Participant Satisfaction Survey was conducted by Diversified in the second quarter of 2010 and included responses from 2,142 retirement plan participants.