"The results of this year's study show high expectations around the role of employers and both the priority and value placed on employer-sponsored retirement benefits," said American Century Investments Vice President, Value Add, Diane Gallagher. "These findings can help retirement plan decision-makers consider participants' points of view in building effective solutions."

In fact, 75% of respondents would like employers to offer holistic financial advice. Two-thirds (66%) of respondents feel that employees should be automatically enrolled in their employer's retirement plan at a set rate that increases automatically every year, and even more (70%) believe the rate should start at 6%.

Perhaps some 20/20 hindsight plays a role in those answers. One of the most interesting questions on the survey asked participants how they felt about saving enough money for retirement. "[H]alf of those surveyed are worried or concerned about saving enough for retirement, including one in eight saying it keeps them up at night," Gallagher said.

Most respondents felt they could have saved more early in their careers — 90% said that if they could talk to their younger selves, their advice would be to save more. But in true human nature fashion, 70% of those said their younger selves wouldn't listen to that advice.

As for outside assistance, 40% of those responding said they believe that paying for financial advice is worth the cost, while another 40% said they would rather spend less and buy software. Twenty percent said they would not pay for financial advice.

The Schwab survey similarly found that saving enough for retirement is a concern. When asked about the factor that is causing the most stress in their lives, 44% picked saving for a comfortable retirement and 25% picked job security, both 6% higher than in 2019.

For Schwab survey participants, $1.9M is the magic number that they feel they need to have saved for retirement, but only 37% feel that they are "very likely" to reach their retirement goals and 14% said they are not likely to.

Retiring later than planned is in store for 21% of respondents.

The Schwab survey showed the impact on COVID-19 on 401(k) investors. Over half have not taken any action on their plans due to the pandemic and the resulting financial uncertainty, but one quarter of those surveyed have spoken to a financial adviser since the beginning of the pandemic, and 67% of those have taken action on their 401(k) accounts (26% of which have rebalanced their account, and 5% have stopped contributing to their plan).

Schwab's survey, conducted by Logica Research, was conducted between May 29 and June 11, 2020, with 1,000 401(k) recipients responding, ages 25-70.

Steve Salkin is a Managing Editor for ALM's Law Journal Newsletters.

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