Participants in 401(k) plans are growing more pessimistic about maintaining their current lifestyles after they retire, according to the results of Mercer HR Services' annual survey. Only 38% of participants expect to live as well or better in retirement than they currently do, down from 52% only two years before — largely because more immediate objectives, including paying down debt and saving for unexpected expenses, are increasingly competing with saving for retirement among priorities, according to the nationwide survey of 1,729 401(k) plan participants.
Retirement remains the savings objective cited by a survey-topping 76% of respondents, but "we are seeing today's expenses creeping up" on the list of priorities, Beth Pasciucco, director of marketing, communications and education, said in a telephone interview. Mercer HR and other service providers need to work to make the case for long-term retirement saving more compelling, Ms. Pasciucco said.
