Schwab 401(k) Study: Confidence Among Workers Improves as Inflation and Market Volatility Concerns Soften
Charles Schwab's annual 401(k) survey reveals improved worker confidence in achieving retirement goals, with 43% feeling very likely to reach their targets, up from 37% in 2023. Despite softening concerns, inflation (58%) and market volatility (36%) remain top obstacles. Workers still aim for a $1.8 million nest egg, expecting it to last 23 years post-retirement.
The study highlights increased 401(k) engagement, with 92% of respondents aware of their account performance. Demand for professional financial advice has risen, with 61% believing their situation warrants it. Workers expect 43% of retirement income from 401(k)s, up from 40% last year, while reliance on Social Security has decreased from 20% to 16%.
Il sondaggio annuale di Charles Schwab sui 401(k) rivela un maggiore fiducia dei lavoratori nel raggiungimento degli obiettivi di pensionamento, con il 43% che si sente molto probabile di raggiungere i propri obiettivi, in aumento rispetto al 37% del 2023. Nonostante una certa attenuazione delle preoccupazioni, l'inflazione (58%) e la volatilità del mercato (36%) rimangono i principali ostacoli. I lavoratori puntano ancora a un cuscinetto di $1,8 milioni, aspettandosi che duri 23 anni dopo il pensionamento.
Lo studio evidenzia un maggiore coinvolgimento nei 401(k), con il 92% degli intervistati che sono a conoscenza delle performance del proprio conto. È aumentata la domanda di consulenza finanziaria professionale, con il 61% che crede che la propria situazione la giustifichi. I lavoratori si aspettano che il 43% del reddito da pensione provenga dai 401(k), in aumento rispetto al 40% dell'anno scorso, mentre la dipendenza dalla Sicurezza Sociale è diminuita dal 20% al 16%.
La encuesta anual sobre 401(k) de Charles Schwab revela una mayor confianza de los trabajadores en lograr sus objetivos de jubilación, con un 43% sintiéndose muy probable de alcanzar sus metas, en comparación con el 37% en 2023. A pesar de la disminución de preocupaciones, la inflación (58%) y la volatilidad del mercado (36%) siguen siendo los principales obstáculos. Los trabajadores aún aspiran a un ahorro de $1.8 millones, esperando que dure 23 años después de la jubilación.
El estudio destaca un mayor compromiso con los 401(k), con el 92% de los encuestados conscientes del rendimiento de su cuenta. La demanda de asesoría financiera profesional ha aumentado, con un 61% creyendo que su situación lo justifica. Los trabajadores esperan que el 43% de sus ingresos de jubilación provengan de los 401(k), frente al 40% del año pasado, mientras que la dependencia de la Seguridad Social ha disminuido del 20% al 16%.
찰스 슈왑의 연례 401(k) 설문조사 결과는 근로자들의 퇴직 목표에 대한 신뢰감이 향상되었다고 나타났으며, 43%가 목표 달성이 매우 가능하다고 느끼고 있습니다. 이는 2023년의 37%에서 증가한 수치입니다. 걱정이 다소 완화되었음에도 불구하고, 인플레이션(58%)과 시장 변동성 (36%)은 여전히 가장 큰 장애물로 남아 있습니다. 근로자들은 여전히 $180만의 퇴직금을 목표로 하고 있으며, 이는 퇴직 후 23년 동안 지속될 것이라고 기대하고 있습니다.
이번 연구는 401(k)에 대한 참여도가 증가하고 있다는 점을 강조하며, 응답자의 92%가 자신의 계좌 성과를 알고 있다고 답했습니다. 전문 재정 상담에 대한 수요가 증가했으며, 61%는 자신의 상황이 이를 정당화한다고 믿고 있습니다. 근로자들은 퇴직 소득의 43%가 401(k)에서 올 것으로 기대하고 있으며, 이는 지난해의 40%에서 증가한 수치입니다. 사회 보장에 대한 의존도는 20%에서 16%로 감소했습니다.
L'enquête annuelle de Charles Schwab sur les 401(k) révèle une confiance accrue des travailleurs dans l'atteinte de leurs objectifs de retraite, avec 43% se déclarant très susceptibles d'atteindre leurs cibles, en hausse par rapport à 37% en 2023. Malgré une certaine atténuation des préoccupations, l'inflation (58%) et la volatilité du marché (36%) restent les principaux obstacles. Les travailleurs visent toujours un capital de 1,8 million de dollars, s'attendant à ce qu'il dure 23 ans après la retraite.
L'étude met en évidence un engagement accru envers les 401(k), avec 92% des répondants conscients de la performance de leur compte. La demande pour des conseils financiers professionnels a augmenté, 61% croyant que leur situation justifie cela. Les travailleurs s'attendent à ce que 43% de leurs revenus de retraite proviennent des 401(k), en hausse par rapport à 40% l'année dernière, tandis que la dépendance à la sécurité sociale a diminué de 20% à 16%.
Die jährliche 401(k)-Umfrage von Charles Schwab zeigt eine verbesserte Zuversicht der Arbeitnehmer bei der Erreichung ihrer Ruhestandsziele, wobei 43% sehr wahrscheinlich sind, ihre Ziele zu erreichen, gegenüber 37% im Jahr 2023. Trotz einer Abnahme der Bedenken bleiben Inflation (58%) und Marktvolatilität (36%) die größten Hindernisse. Die Arbeitnehmer streben weiterhin ein Nestegg von 1,8 Millionen Dollar an, von dem sie erwarten, dass es 23 Jahre nach dem Ruhestand reicht.
Die Studie hebt ein erhöhtes Engagement für 401(k) hervor, wobei 92% der Befragten über die Performance ihres Kontos informiert sind. Die Nachfrage nach professioneller Finanzberatung ist gestiegen, da 61% glauben, dass ihre Situation dies rechtfertigt. Die Arbeitnehmer erwarten, dass 43% ihres Renteneinkommens aus 401(k) stammen, verglichen mit 40% im letzten Jahr, während die Abhängigkeit von der Sozialversicherung von 20% auf 16% gesunken ist.
- Increased worker confidence in achieving retirement goals (43% vs 37% in 2023)
- Improved 401(k) engagement with 92% aware of account performance
- Rising demand for professional financial advice (61% vs 55% in 2023)
- Higher expected reliance on 401(k)s for retirement income (43% vs 40% in 2023)
- Inflation (58%) and market volatility (36%) remain top obstacles to retirement savings
- Decreased expected reliance on Social Security for retirement income (16% vs 20% in 2023)
Insights
As a financial analyst, I find this survey data from Charles Schwab quite impactful for understanding current retirement savings trends. The increase in worker confidence about achieving retirement goals (from
Several key points stand out:
- The consistent
$1.8 million retirement savings goal across two years suggests workers are maintaining high expectations despite economic fluctuations. - The shift in expected retirement income sources, with 401(k)s gaining importance (from
40% to43% ) while Social Security expectations decrease (from20% to16% ), indicates a growing reliance on personal savings vehicles. - The increased demand for professional financial advice (up from
55% to61% ) could signal a market opportunity for financial services firms.
From an investor's perspective, this data suggests potential growth in the retirement planning and wealth management sectors. Companies offering robust 401(k) plans, financial advisory services and alternative retirement savings products may see increased demand. However, the declining faith in Social Security could put pressure on government-focused retirement solutions.
Overall, this survey points to a cautiously optimistic outlook for retirement-focused financial services, with a clear trend towards personalized, professional guidance in retirement planning.
As a market research analyst, I see several intriguing trends in this Schwab 401(k) study that could significantly impact various industries:
- Rising confidence in digital tools: The increase in comfort with AI tools like ChatGPT for financial planning (from
49% to61% ) suggests a growing market for robo-advisors and AI-powered financial services. - Persistent demand for human advice: Despite the rise in AI comfort,
60% of respondents are very likely to follow human professional advice, compared to only19% for computer-generated recommendations. This indicates a continued strong market for traditional financial advisors. - Shift in retirement income expectations: The decreased reliance on Social Security, particularly among younger workers, points to potential growth in alternative retirement products and services.
These trends suggest opportunities for:
- Financial technology companies developing AI-powered planning tools
- Traditional financial advisory firms emphasizing human expertise
- Companies offering diversified retirement savings products, especially those targeting younger workers
- Employers to differentiate themselves through comprehensive retirement benefits packages
The data also highlights a potential generational divide in retirement planning approaches, which could influence marketing strategies and product development in the financial services sector. Companies that can effectively bridge the gap between digital tools and human expertise may be best positioned to capitalize on these evolving consumer preferences.
Demand for advice rises as 401(k) investors grow more bullish on professional help
Inflation and stock market volatility continue to be the biggest obstacles to saving for a comfortable retirement, though workers are slightly less concerned about both factors in 2024.
Top obstacles to saving for a comfortable retirement |
2023 |
2024 |
Inflation |
|
|
Market volatility |
|
|
Workers still think they need to save
“Workers are feeling more optimistic about their retirement prospects and an improving economic climate tends to boost financial confidence, but it’s not the only factor,” said Lee McAdoo, Managing Director of Schwab Retirement Plan Services. “We’re seeing heightened awareness around 401(k) investments and performance – a promising sign that workers are actively engaging with their accounts and cultivating knowledge to help them reach their goals.”
Only
Workers: I get by with a little help from my friends
As confidence and 401(k) knowledge have improved, workers’ appetite for financial advice has increased as well.
Sixty-one percent feel their financial situation warrants advice from a professional, higher than last year (
Workers are most likely to say they seek advice directly through their 401(k) plan (
“Improved 401(k) confidence is not necessarily an indicator that workers are comfortable going it alone,” said Marci Stewart, Director of Client Experience at Schwab Workplace Financial Services. “In fact, they are realizing that professional help has the potential to further accelerate their progress. Self-guided education and computer-generated advice can provide solid financial wellness support, and a human professional can validate your plan and make more tailored recommendations, which can be invaluable for feeling more confident and financially secure in the long term.”
The emerging retirement challenge: solving the income puzzle
The survey finds that more workers would like help with creating an income stream in retirement — a possible symptom of waning confidence in Social Security.
Overall, respondents expect
Expected percentage of retirement income by source |
Within 10 years of retirement |
11 or more years from retirement |
401(k) (participant’s and spouse/partner’s 401(k)) |
|
|
Social Security |
|
|
Additional sources (e.g., investments, defined benefit plans, company stock plans, part-time work) |
|
|
Workers who are closer to retirement also have focused on investing outside their 401(k) through individual retirement accounts and brokerage accounts significantly more than those who are further from retirement. Savings accounts are popular among all workers, and a significant share of workers are using health savings accounts and company stock plans to save for retirement, too.
“Uncertainty about the future of Social Security means employers will play an increasingly important role in helping workers develop a retirement income stream not only through their 401(k), but also through other workplace financial benefits that can include health savings accounts, company stock plans and traditional pension plans,” said Stewart.
About the survey
This online survey of 1,000
About Charles Schwab
At Charles Schwab, we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.
More information is available at www.aboutschwab.com. Follow us on X, Facebook, YouTube and LinkedIn.
Disclosures
Workplace Financial Services is a business enterprise which offers products and services through Schwab Retirement Plan Services, Inc.; Schwab Stock Plan Services; and Designated Brokerage Services. Schwab Retirement Plan Services, Inc., provides recordkeeping and related services with respect to retirement plans. Schwab Stock Plan Services is a division of Charles Schwab & Co., Inc. providing equity compensation plan services and brokerage solutions for corporate clients. Schwab Designated Brokerage Services (DBS), a division of Charles Schwab & Co., Inc., provides technology solutions for corporate clients with regulatory requirements to monitor employee security transactions. Schwab Retirement Plan Services, Inc., and Charles Schwab & Co., Inc. (“Schwab”) (Member SIPC) are separate but affiliated entities, and each is a subsidiary of The Charles Schwab Corporation.
0724-C23D
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724006959/en/
Mike Peterson
Charles Schwab
330-908-4334
mike.peterson@schwab.com
Carly Taylor
The Neibart Group
973-618-6993
SchwabRPS@neibartgroup.com
Source: The Charles Schwab Corporation
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