A survey by Natixis, an international investment management
firm, shows retirement plan participants who have financial advisors contribute
more to their plans and are more knowledgeable about the plans than those who
do not have advisors. However, many of those nearest retirement, baby boomers,
are not saving nearly enough to meet their retirement goals, according to
the survey of 1,000 American adults, including 899 who are participating in
employer-sponsored retirement plans.
The survey found that 90 percent of respondents eligible to
participate in a 401(k) plan are making contributions. Participants say tax
incentives, matching contributions by employers and automatic enrollment are
factors in their participation.
Investors with advisors contribute a higher percentage of
their salaries (9.5 percent) than those without advisors (7.8 percent). A
higher rate of participants with advisors (74 percent) also say they know what
their savings balance should when they retire, than those without an advisor
However, investors knowing their goal does not necessarily
mean they are on their way to meeting it, the survey shows. Thirty-three
percent of boomers have put aside less than $50,000 and boomers on average have
saved $262,541, only about one third of the $805,000 they predict they will need
Not having a financial advisor also contributes to
participants’ confusion about the plans, the survey says. Forty-nine percent of
those without an advisor say their employer’s information on its retirement
plan is difficult to understand, while 37 percent of those participants with an
advisor agree with that sentiment.
A majority of participants with advisors (71 percent) have
talked to their advisor about their retirement needs.
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