The Great Recession wrought a lot of havoc — and 401(k)s did not escape the maelstrom. Many consider the recovery of the U.S. economy to be very gradual; a recent report by Gallup indicates that the same may be said for that of confidence of those not yet retired in 401(k)s as a primary source of retirement income.
In the heady pre-Recession times of April 2008, more than half — 54 percent — of Americans who are not retired said that they expected their 401(k)s to be their primary source of retirement income. But what a difference a year makes — at the same time in 2009, after the full force of the recession had hit, that fell to 42 percent.
Since then, confidence in 401(k)s to deliver the retirement security their holders envisioned has been climbing slowly. Gallup reports that by this April, it had regained half the ground lost and now is at 48 percent.
This slow recovery of participants to trust 401(k)s as a primary retirement income source comes against a backdrop of concern over saving for retirement: Gallup says that is the top financial worry for 59 percent of Americans. It also says that 401(k)s are among the sources from which those who are setting aside money for retirement expect to draw, and suggests that workers have more to do in that regard in light of studies that show that workers need to save more than they are now.
John Iekel is Senior Writer and Editor for the ASPPA Net and NTSA Net portals.
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