December 8th, 2006 401k Participants Okay Investment Decisions but Worry About Running out of Money During Retirement
In a recent 401k survey conducted by the New York Life Investment Management LLC (NYLIM), many 401k participants agreed that they are making the correct investment decisions when it comes to investing their retirement savings, but still worry that they will not have enough money to survive on upon retirement.
The survey had a sample population of 8,958 401k participants and 60% of them acknowledge that they are making the right investment decisions. However, only 40% out of all 401k participants are certain that they will not run out of money upon retirement. Furthermore, more than 50% of the participants said they would take on higher investment risks if that meant higher returns on their investment (ROI).
Don Salama, senior managing director of NYLIM Retirement Plan Services quotes, "This research shows us several things - first, that by emphasizing a retirement account balance instead of the amount necessary to retire in comfort, we have all been putting the emphasis on the wrong idea. Many of these participants monitor their investments carefully, are prepared to take some risk and feel they're making good decisions, but are still worried they won't have enough for the long haul."
Here is some more interesting data retrieved from this survey: