2021 401(k) Participant: Schwab Study

Financial Advisor, TheBalance, 401kSpecialist, and The Motley Fool recently covered Charles Schwab’s 2021 401(k) Participant Study with Logica Research. This study was conducted to explore retirement planning and saving trends in the United States.


Spending and Saving Habits

Financial Advisor writes that, “The Covid crisis exposed the lack of financial preparation many face and survey participants said it has changed the way they approach saving and spending. Nearly half (48%) said they plan to save more in general, 36% plan to increase their 401(k) contributions, 35% plan to invest more outside of their 401(k) plan and 34% indicate that they plan to pay off debt. Despite being optimistic in their new approach to saving, participants said they face obstacles, citing market volatility (32%), unexpected expenses (29%), keeping up with monthly expenses (27%), education expenses (21%), and credit card debt (20%). Nearly two-thirds (61%) believe their financial situation would benefit from professional advice, compared with 50% in 2020.”


HSA Offerings

79% of employees are offered an HSA by their employers, yet only 49% use that account. And that’s a big mistake, the The Motley Fool shares. They go on to write that, “Many people like saving in IRAs and 401(k)s for the tax benefits involved. But HSA offer even more tax savings.” 


Retirement Saving Expectations

As stated in the article by 401kSpecialist, “The annual nationwide survey of 401k plan participants finds that more than half (53%) say they are very likely to achieve their retirement goals, compared to just 37% in 2020.” As cited in an article by TheBalance “Survey respondents predicted they’ll need an impressive $1.9 million in their golden years.

To find out more information, you can read articles by Financial Advisor, TheBalance, 401kSpecialist, and The Motley Fool.


Background: Logica Research conducted an online survey for Charles Schwab from April 1, 2021 through April 15, 2021. Those surveyed were 1,000 401(k) plan participants aged 21 to 70, and 100 additional Gen Z plan participants. You can find the study here.

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