Participants Are Saving More to Make Up for Market Downturn
HARRISON, NY, June 24, 2010 -- 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. In addition, 20% of participants have moved into more aggressive investment options, reports a just released survey of retirement plan participants conducted by Diversified Investment Advisors, Inc., a national investment advisory firm specializing in retirement plans.
"These findings may be surprising given the recent economic downturn. While many people have curtailed their spending, the results suggest that many participants appreciate the importance of funding their retirement plans. In fact, 70% of respondents had reviewed their retirement outlook in the past year, so we're very encouraged by these findings," said Patricia Advaney, senior vice president, participant solutions.
2,142 Retirement plan participants responded to the 2010 Participant Satisfaction Survey, which was conducted by Diversified in the second quarter of 2010. Among the survey's other key findings:
- Three out of five participants are saving six percent or more for their retirement, with 17% of these individuals saving more than 15% of their income.
- Despite the financial hardship caused by the economic downturn, only 4% had taken a hardship withdrawal. However, 15% had taken a loan and 12% decreased the amount they are saving for retirement.
- 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.
- Fifty-five percent have used an online calculator, asked a financial advisor 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.
- 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.
"This survey indicates that many plan participants are more aware of their retirement needs than we have given them credit for. Unfortunately, it may have taken an economic crisis to get to this point," noted Advaney.
About Diversified Investment Advisors
Diversified Investment Advisors, Inc. is a leading provider of customized retirement plan administration, participant communication and open architecture investment solutions for mid- to large-sized organizations. The company's expertise covers the entire spectrum of defined benefit and defined contribution plans, including: 401k and 403(b) (Traditional and Roth); 457; non-qualified deferred compensation; profit sharing; money purchase; cash balance and Taft-Hartley plans; and rollover and Roth IRA. Diversified helps more than 1.7 million participants save and invest wisely for and throughout retirement. Headquartered in Harrison, NY, the company's regional offices are located in Arkansas, California, Florida, Illinois, Iowa, Louisiana, Maryland, Massachusetts, New York, North Carolina, Ohio, Oregon, Pennsylvania, Texas, Utah and Wisconsin. To learn more, visit www.divinvest.com.
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