Confidence in reaching retirement goals has risen sharply among 401(k) plan participants, according to a survey from Schwab Retirement Plan Services.

The 2021 401(k) Participant Survey revealed that 53% said they are "very likely" to achieve their retirement goals, compared with 37% at the beginning of the pandemic. An overwhelming 91% of respondents said they feel either very or pretty good about their financial health.

The survey of 1,000 respondents, which was conducted in April, also found that plan participants on average believe they need to save $1.9 million for retirement, the same amount as in 2020.

The Covid crisis exposed the lack of financial preparation many face and survey participants said it has changed the way they approach saving and spending. Nearly half (48%) said they plan to save more in general, 36% plan to increase their 401(k) contributions, 35% plan to invest more outside of their 401(k) plan and 34% indicate that they plan to pay off debt.

Despite being optimistic in their new approach to saving, participants said they face obstacles, citing market volatility (32%), unexpected expenses (29%), keeping up with monthly expenses (27%), education expenses (21%), and credit card debt (20%).

But many are willing to seek professional advice. Nearly two-thirds (61%) believe their financial situation would benefit from professional advice, compared with 50% in 2020.

The survey found that respondents are most interested in advice on setting specific retirement targets and how to invest their 401(k). Specifically, 44% want help in calculating how much they need to save for retirement, 39% need advice on how to invest a 401(k), 35% want to learn how to figure out how to create income in retirement, 35% need awareness on anticipating taxes, 33% need help in figuring out what their expenses will be in retirement and 33% need help in determining what age to retire.

And while participants are more confident in seeking professional help with their finances (56% in 2021 versus 49% in 2020 and 44% in 2019), the percentage has also grown for respondents who are very confident making their own 401(k) investment decisions (40% in 2021, 32% in 2020 and 25% in 2019), the survey showed.

Additionally, the survey found that for those seeking a new job, benefits such as 401(k) plans (86%) and health insurance (84%) are most desired, followed by life insurance (50%), disability insurance (43%) and health savings accounts (38%).

The survey found that HSAs have gained the most in popularity, with 38% of respondents considering them as must-haves, compared with 32% in 2020. It noted that 79% have access to an HSA at work, and 49% use it. The survey also found that more participants are using HSAs to save for healthcare expenses in retirement (54% in 2021 versus 41% in 2020).

“We experienced tremendous stress in our work and home lives this past year that highlighted the importance of financial wellness and the value of trusted advice,” Catherine Golladay, head of Schwab Workplace Financial Services, said in a statement. “Now, as we emerge from the pandemic, employers have an opportunity to engage employees with education, advice and a range of other workplace benefits to help them build financial security and increase satisfaction at work.”