Few workers understand the retirement savings plans they have at work and time may be ripe to educate them, a survey by The Hartford shows.
One in three (34 percent) Americans say they have little or no understanding of their retirement plan and three in four (74 percent) say they have less than a complete understanding, according to research from Hartford Financial Services Group Inc.
Employees indicated they had a better understanding of other benefits provided through their employer, such as medical coverage and life insurance.
The Hartford’s research found differences in understanding by both gender and age. More men (75 percent) reported they needed little direction to understand their retirement benefits as compared to women (56 percent).
Also, Generation X (ages 30-44) reported having the best understanding of their retirement plan, even higher than Baby Boomers (ages 45-65) who are chronologically closer to retirement.
Employers carry the most weight, with one in five (19 percent) plan participants saying they look to their place of employment for guidance on retirement savings matters. Other key influencers were financial advisors (15 percent), spouses (13 percent), immediate family (12 percent), the Internet (9 percent) and program providers (7 percent), the survey found.
Age and gender also influenced who plan participants turned to for advice. Women trusted immediate family members and spouses more than men did, while men were more likely than women to gravitate to the Internet as a source of information.
Employers ranked as the top influencer for Baby Boomers and Gen Xers while Generation Y (ages 18-29) – the youngest group polled – was most likely to be influenced by their immediate family.
