Charles Schwab 2024 401(k) Participant Study

Charles Schwab’s 2024 401(k) Participant study, conducted by Logica Research, reveals a growing confidence among workers regarding their retirement prospects, as a reduction in concerns over inflation and market volatility. Additionally, the study highlights a rising demand for professional financial advice. The study results were covered in multiple media outlets, including Kiplinger, Wealth Management, and Money & Finance. 

What People Think They Need to Retire

The Kiplinger article, “Most People Think They Need $1.8 Million to Retire. Do You?” discusses the study findings about needed retirement savings. Despite the growing confidence among workers about their retirement savings, findings show people still believe they need $1.8 million for a comfortable retirement, unchanged from last year’s findings. Workers continue to recognize the significant financial demands of retirement. 

Seeking Financial Advice in Bullish Market

The Schwab survey found that 61% of 401(k) participants feel their financial situation warrants financial advice, as noted in Wealth Management’s article, “Majority of 401(k) Participants Itching for Financial Advice”. This figure has increased from a year ago, when 55% of those surveyed felt this way. According to Money & Finance, top areas for financial advice “include calculating how much money is needed for retirement, receiving advice on 401(k) investments, creating an income stream in retirement, determining the optimal retirement age, and anticipating tax expenses.”  The Schwab 401(k) Participant study also found that more say they are very likely to follow human professional advice recommendations (60%) rather than computer-generated recommendations (19%).

401K is Key For Retirement Income

Money & Finance notes that the survey shows workers increasingly viewing their 401(k) as their main source of retirement income, with Social Security’s role diminishing—especially among younger workers who plan to rely more on diversified income sources like savings, investments and part-time work. This shift emphasizes the need for comprehensive retirement planning, incorporating various income sources beyond just Social Security and traditional savings accounts.

About the Study

This online survey of 1,000 U.S. 401(k) plan participants was conducted by Logica Research between April 17 and May 3, 2024. Survey respondents were actively employed by companies with at least 25 employees, were 401(k) plan participants and were 21-70 years old. Survey respondents include participants served by approximately 15 different retirement plan providers. All data is self-reported by study participants and is not verified or validated. Detailed results can be found here.