Risk Levels

The study said about 67% of participants in 401(k) plans across all age groups need to improve their diversification and adjust risk levels to reach retirement goals. The report also said that the recession has hurt savings rates. About 39% of workers aren't contributing enough to their accounts to receive the full employer match, up from 33% in 2008.

Financial Engines is an independent registered investment adviser that provides advice online to 7.4 million 401(k) investors through employers that have hired the company, including about 120 businesses in the Fortune 500. The firm, which went public in March, also manages about $30 billion in retirement assets.

"You're putting a lot of responsibility on the individual" now that more workers save for retirement through 401(k)s rather than traditional pension plans, said Carrie Schwab-Pomerantz, president of Charles Schwab Foundation, which sponsors financial literacy. "Individuals have to not only make the effort to save, they have to make the effort to choose the investments as well."

 

First « 1 2 » Next