In spite of everything happening with the economy, most Americans still believe their 401(k) plans can help them reach their retirement goals, according to an Investment Company Institute survey.
In a survey of 3,000 households taken in December, ICI found that 73% of households indicated that they are confident that retirement plan accounts can help people reach their retirement goals. Among households that participate in defined contribution plans or own individual retirement accounts, 78% expressed confidence in these plans. Even larger majorities supported key features of the 401(k) system, including tax advantages for employee and employer savings, payroll deduction, and individual choice and control, according to ICI.
Another ICI survey of plan record keepers of nearly 24 million DC plan accounts from January through September 2009 showed 95% of participants kept contributing. Only about one in 10 changed the asset allocation of their account balances and one in 10 changed the asset allocation of their contributions. Only 2.6% took withdrawals, 1.3% took hardship withdrawals and 16.8% had loans outstanding.