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401(k)s Change How Americans Face Retirement

Out of all US households surveyed, 77 percent are confident 401(k)s can help reach retirement goals. That includes a lot of people since over 55 million Americans participate in 401(k) plans.  Those plans are estimated to contain $5.67 trillion in assets at the end of first quarter 2019 according to the investment research and advocacy organization.

What investors seem to enjoy most about 401(k) options, are the control and choices available.  On average, 401(k) plans offer 27 investment options, which helps create diversified portfolios.  Because mutual fund expense ratios have been declining over time, being in control means investors have the option to take advantage of the lower cost funds.  Employer sponsored retirement plan accounts make the difference in employees’ confidence over being able to meet retirement goals.  Even among households who did not own a retirement plan account, the majority (62 percent) expressed confidence in employer sponsored retirement plans.

The whole point behind the September 6 celebration of 401(k) day, is to encourage savers to use one day each year to review their retirement goals and compare to their current 401(k) plan investments.  Taking one day a year to make sure you are on track to meet your retirement targets, is a great way to figure out how you want to use the flexibility of your 401(k) plan.