More than three out of four defined contribution plan participants don't take full advantage of savings and retirement tools available to them, according to a report by Mesirow Financial that gauged plan executives' assessment of participant behavior and their plans' structures.
According to the report, based on the results of a survey of 101 plan executives, 78.5% of participants did not “take full advantage” of available savings and retirement tools.
Fifty-nine percent said they didn't detect an increase in participants asking for assistance with their retirement accounts during “recent market volatility,” the report said.
Among the greatest concerns cited by executives related to their plans, 38.7% said “investment performance dictated by a volatile market”; 30% said “effective” participation; and 18.3% said participants' dependence on the plan “as the only retirement savings vehicle.”
“Our survey was meant as a taking of the pulse of the market,” Christopher Reagan, managing director and practice leader at Mesirow, said in a telephone interview.
The e-mailed survey, from mid-November through mid-January, included clients and non-clients of Mesirow primarily in the Midwest, Mr. Reagan said. The survey focused primarily on 401(k) plans but also included responses from 403(b) plans, Mr. Reagan said. It was first retirement plan survey of DC plan executives conducted by Mesirow.
