Plan administrators and sponsors have some work to do in educating plan participants, a recent study indicates. Researchers add awareness of fees to the curriculum.
One-quarter of those surveyed do not know how much they pay in fees, found investment firm Rebalance.
But that’s just the tip of the iceberg. An overwhelming majority—almost 75%—of the 1,016 U.S. adults age 45-75 and employed full time surveyed in February say they are not aware of much they are required to pay for management of their retirement accounts. And more than half—57%—contend that they pay nothing or next to nothing.
And the lack of knowledge extends to investments, Rebalance adds. They report that 51% are unaware of the extent to which their retirement funds are invested in stocks and bonds.
Respondents also evinced regret about investments: 84% would like to have learned more about investing earlier in life, and a whopping 89% would like to have invested more in their retirement accounts when they were younger. But some, at least, have taken action now. Rebalance reports that, fueled by concerns raised by the pandemic, 62% have increased the amount they are saving for retirement, and two-thirds have changed how they approach retirement investing.
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