2019 401(k) Participant Survey - Charles Schwab

2019 401(k) Participant Survey

June 2019

On average, participants think they need $1.7 million saved for retirement

Less than $100,000 $100,000 to less than $250,000 $250,000 to less than $500,000

$500,000 to less than $750,000

$750,000 to less than $1 million

4%

7%

10% 11%

14%

Average = $1.7 million

$1 million to less than $3 million

33%

$3 million to less than $5 million

8%

2%

$5 million to less than $10 million $10 million or more

1%

Q: How much do you think you need to have saved for retirement? (Base: Total 401(k) Participants = 1,000)

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Nearly six in ten say their 401(k) is their only or largest source of retirement savings

My 401(k) plan is my...

18%

40%

33%

8% 2%

58% say their 401(k) is their only or largest source of retirement savings

Only source of retirement savings

Largest source of retirement savings

Medium source of retirement savings

Smallest source of retirement savings

Not sure

Q: How would you complete this sentence? My 401(k) plan is my... (Base: Total 401(k) Participants = 1,000)

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Two-thirds say a 401(k) plan represents their first experience with investing; most view themselves as "savers" rather than "investors"

I think my quality of life in retirement will be better than my

parents'

I think my quality of life in retirement will be better than the

next generation's My 401(k) was my first investing

experience

I'm more concerned about having enough money to enjoy retirement

I am checking my 401(k) balance more this past year than in previous years

I am focused on paying off debt now

When it comes to my 401(k), I think of myself more as an investor

I'd rather live well now than save for an uncertain future

Saving to buy a house is more important

68% 67% 65% 50% 46% 39% 36% 26% 21%

32% 33% 35% 50% 54% 61% 64% 74% 79%

Q: Please select which statement describes you best. (Base: Total 401(k) Participants = 1,000)

I think my quality of life in retirement will be worse than my parents' I think my quality of life in retirement will be worse than the next generation's

I was an investor before I had my first 401(k)

I'm more concerned about being healthy enough to enjoy retirement

I am not checking my 401(k) balance any more this year than I have in previous years I am focused on saving money for retirement

When it comes to my 401(k), I think of myself more as a saver

It's more important to live frugally now to save more for retirement

Saving for retirement is more important

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Outside of their 401(k), participants are more likely to use a savings account to prepare for retirement than any other type of investment account

54%

46%

30%

23%

12%

11%

3%

Saving in a Investing in an

savings account

IRA

Investing through a brokerage account

Saving in a Investing in real Investing in tax- Investing in a

health savings

estate

deferred small business

account (HSA)

annuities

2% Other

Q: Which of the following methods are you using to save or invest for retirement? (Base: Total 401(k) Participants = 1,000)

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Half of participants are contributing 10% or less of their salary to their 401(k)

Percent of 2018 income contributed to 401(k)

Average 2018 dollars contributed to 401(k)

Not sure

1-5%

2%

20%

The maximum 23%

$8,788

31% 6-10%

9% >15% 15%

11-15%

Q: In 2018, approximately how much did you contribute to your 401(k)? (Base: Total 401(k) Participants=1,000) Q: In 2018, approximately how much did you contribute to your 401(k) in terms of dollars? Do not include any contributions from your employer, like matches or profit sharing. (Base: Total 401(k) Participants=1,000)

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Less than half of participants increased their 401(k) contribution in the past two years

47%

Increased the amount I am contributing to/saving in my plan

4%

49%

Decreased the amount I am contributing to/saving in my plan

I have not made any changes over the past two years to the percent of my salary I save in my plan

Q: Which of the following describes what you have done in your 401(k) plan in the past two years? (Base: Total 401(k) Participants=1,000)

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When deciding how much to contribute to their plan initially, most participants chose a percentage they were comfortable with and a third chose the match percentage

I selected a percentage that I was comfortable with

55%

I chose to contribute as much as my employer matches

36%

My employer auto-enrolled me and they set the contribution rate 8%

I don't know 1%

Q: How did you decide how much to contribute to your plan when you enrolled in your 401(k)? (Base: Total 401(k) Participants = 1,000)

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