If employers were teachers and the 401(k) a student, the plans would get a B grade, a Charles Schwab survey reveals, finding that a majority of senior finance and HR execs support the 401(k) as an effective savings tool for retirement.
Polling more than 200 pros from large companies in various industries nationwide, Schwab finds:
* 80% think greater access to 401(k) investment planning advice is more important for employees now than a year ago.
* 66% believe that making broader financial education in the workplace is more important for employees now than a year ago.
* 51% of executives report no change in their 401(k) plan participation rate, despite negative returns. (Maybe Im just editorializing here, but I think I spot inertias fingerprints on this one.)
* 63% say employee concerns over personal finances are creating a more difficult work environment.
* 58% believe that employees losing confidence in the 401(k) plan is one of the most significant challenges their company will face in the coming year relative to retirement planning.
This good taken with the bad lead most pros to give 401(k)s a B overall. Others were more/less kind:
A The current system works and doesnt need to be changed at all 9%
B The current system works and only needs slight modification 56%
C The current system is working, but could use a number of improvements 32%
D The current system is not working and needs wide-scale changes 2%
F The current system does not work and needs to be replaced 1%
Personally, Id give the 401(k) a C-. What grade would you give the 401(k)?
