A survey of over 1000 401(k) holders by a major investment firm showed that over half of those polled wanted help from a financial professional. And no wonder. Over 70% of these people expected their employer’s retirement savings plan to be their main source of income after they stop working.
A significant majority (71%) expected their employer’s retirement savings plan to be their main source of income after they stop working. Yet participation is far from perfect. Two thirds of employees reported socking 5% or more of their pay into a 401(k) plan. Among those within five years of retiring, 56% save at least 10%. But only 20% overall are saving the legal maximum per year, and even among pre-retirees, just 37% are maximizing contributions.
Employers are unwilling to provide advice because of the liability involved. And even if they wanted, they are unable to provide the advice because they do not have the necessary expertise in-house.
Korving & Company has begun offering investment advice to participants in 401(k) and similar retirement savings plans. We do not require people interested in our services to open accounts. For more information, you can contact us via our website or call us at 757-638-5490.