Employees who have 401(k) plans are afraid inflation is eating away at their savings and they are turning to financial advisors for help, according to Schwab Retirement Plan Services.

The help of an advisor would make a majority feel confident in making decisions about their savings plans, according to a nationwide survey of more than 1,000 401(k) participants released today.

“Workers are facing an array of economic challenges that are driving their demand for financial advice,” Catherine Golladay, head of Schwab Workplace Financial Services, said in a statement. “Employers can help by debunking misconceptions about financial advice available through the workplace. Many employers offer different levels of advice, and workers tell us making 401(k) investment decisions with the help of a financial professional would make them more confident, which is one of the most important factors in their financial well-being.”

According to the survey, 60% of the participants said their financial situation warrants professional advice, and 55% said they would be very confident making 401(k) investment decisions with the help of a financial professional, compared with just 38% who said they are very confident making 401(k) investment decisions on their own.

Plan participants said they want help with how to invest their 401(k) account; calculating how much money to save for retirement; creating an income stream in retirement; determining at what age they can afford to retire; and anticipating taxes in retirement.

However, those same employees hesitate to reach out to advisors provided by their employers because they either are not aware advice is available or they fear the advice is too costly, is limited, or might breach their confidentiality.

Plan participants also said persistent inflation is the top obstacle to their saving for a comfortable retirement, ranking higher as a concern than keeping up with monthly expenses, stock market volatility and unexpected expenses.

“Workers have been through a lot over the past two years and it’s only natural that recent economic and geopolitical turbulence has continued to fuel financial concerns,” Golladay added. “While plan participants can’t control inflation or the markets, the good news is they are taking steps to manage their finances with an eye to the future.”

Plan participants said they are making some changes in their saving, spending and investing habits as a result of rising costs and market volatility: 34% are cutting spending, in part by paying off debt more slowly. However, the survey said that despite the belt tightening, 33% of workers still are saving less than they did before the pandemic.

The pandemic has had a detrimental impact on many employees, prompting one-quarter of them to postpone retirement plans, and one-third to question how long their savings will last.

Financial strain continues to take a toll on mental health, Schwab Retirement Plan Services said. Only 15% of employees said they have not been under financial stress, and more than one-quarter said stress about their financial situation has impacted their ability to do their job in the past year.

The majority of employers (60%) have taken steps to help workers manage financial stress in the form of increased pay (32%), increased 401(k) matches (23%), or additional bonuses (20%). Eleven percent also decreased hours to allow for better work-life balance, the survey said.

Plan participants said they believe they will need to save an average of $1.7 million for retirement, which was a decrease from the $1.9 million reported in last year’s survey. But less than half think they are very likely to reach their retirement savings goal. They expect the 401(k) to be their primary financial resource in retirement, followed by Social Security.