Heather Struck

Americans often view saving for retirement as a choice between contributing to a workplace 401(k) plan or funding an IRA, even though the majority of people are allowed to contribute to both at the same time. A new report by Fidelity Investments indicates that as companies cut down on pension plans, more workers are contributing to both Individual Retirement Accounts and 401(k) plans. Those who contribute to both end up saving much more overall, the study showed. In addition, workers are more likely to save for retirement if they seek financial advice.

Despite flat stock market returns in 2011, investors haven't lost faith in their workplace retirement plans, according to two studies released on Tuesday by the Investment Company Institute.