They may be seeking more help for their investments than for their health, but that doesn’t mean that people are preparing adequately for retirement.

Those are some of the findings of a new survey of 1,000 401(k) plan participants, commissioned by Schwab Retirement Plan Services. Survey results indicate that, although they know they need to save, more than a third (35 percent) say they aren’t saving more for tomorrow because they are unwilling to sacrifice their quality of life today, citing such examples as spending for dinners out and vacations.

Only one in five participants would be confident in their ability to save for retirement without a 401(k) plan. In fact, participants worry as much about having enough money to enjoy retirement as they do about being healthy enough to enjoy retirement.

They also point out that paying for unexpected expenses (31 percent), covering basic monthly bills (31 percent), paying off credit card debt (24 percent) and saving for education (22 percent) are making it tough to set aside enough money for their golden years.

Then there’s the little matter of knowing what they need and understanding their retirement plans. While 90 percent know what their ideal credit score should be, only 58 percent know how much they should save for a comfortable retirement. And nearly half (47 percent) say that materials explaining their 401(k) plan investments are more confusing than materials explaining their health and medical benefits. Maybe that’s why roughly three in 10 (29 percent) have either decreased or not made any changes to their 401(k) savings rate in the last two years.

Yet people say they’re taking retirement planning as seriously as they take their health — sometimes even more so. While 68 percent of respondents said they consider making the best 401(k) investment choices a key priority, just 59 percent said that a key priority was keeping in shape. Seventy-three percent would rather see a 15 percent increase in their 401(k) balance this year than lose 15 pounds. In fact, participants pay more attention to 401(k) investment fees (64 percent) than ATM fees (60 percent), airline baggage fees (50 percent) or gym sign-up fees (49 percent).

Instant Insights /

Retirement savings, physical health challenging for workers

More From HR Executive

Related Stories

Recommended For You