A tactic some retirement plan providers are using as a new way to motivate 401(k) savings is relatively unsuccessful, according to findings in Employee Benefit Research Institutes 2014 Retirement Confidence Survey. As EBRI notes, the U.S. Department of Labor last year suggested that retirement plan statements display, at the top of employee statements and Web portals, the amount of monthly income their current rate of savings would translate into in retirement.
The industry research groups annual survey found that only 17% of respondents said they would change their 401(k) contributions as a result of viewing that number. There were 1,501 employees and retirees polled. This is possibly because 58% of those respondents were not surprised at the approximate monthly retirement income, the organization suggests in a statement.
