JPMorgan Retirement Plan Services 401(K) Quiz Reveals Need For Knowledge, Time and Interest by Investors
Half of Respondents Flunk 401(K) Quiz Covering the Basics of Retirement
NEW YORK, April 4 /PRNewswire/ -- JPMorgan Retirement Plan Services' 401(k) Quiz, a national poll measuring consumer knowledge of defined contribution plans, reveals an overall lack of engagement by participants effectively planning for their retirement. Most significantly only 4% of participants could rank four investments from the most conservative to the most aggressive (stable value fund, bond fund, growth fund, company stock). Only 16% of the random group was able to point out that the Stable Value Fund has the least amount of risk. The JPMorgan Retirement Plan Services Quiz also asked consumers the following questions: Question Answer % that answered correctly 1. Where did the term The section of the IRS tax code 47% 401(k) come from? that outlines this type of program 2. You can contribute True 75% to both a 401(k) plan and an IRA in the same tax year. 3. Which one of the 16% service charge paid 38% following is NOT to the employer a consequence of taking cash distribution from a 401(k) plan before reaching retirement age? 4. Investment experts Investing too conservatively, 28% generally cite which that is, not including enough of the following as of their retirement assets one of the biggest in growth vehicles such mistakes made by 401(k) as stock investments plan participants? 5. When you change jobs, Roll it over to an IRA; 69% you can do the leave it in your former employer's following with your plan as long as the balance is more 401(k) balance: than $5,000; move it to your new employer's plan 6. Who is ultimately The participant 75% responsible for making 401(k) investment decisions? 7. Please rank the Stable value fund, Bond fund, 4% investments below Growth fund, Company stock from most conservative to most aggressive: 8. Which of the following Penalty-free withdrawals are 63% is not a benefit of a always allowed for educational 401(k) plan? expenses 9. Generally, how much 70% of your annual income 52% will you need each year to live comfortably in retirement? 10. You should When your investment goals or 47% reallocate your time horizon have changed: to keep investments: your overall asset allocation balanced appropriately "The results of our 401(k) Pop Quiz point to a serious lack of knowledge, time and interest preventing plan participants from achieving their retirement goals," says Melissa Hooker, managing director and head of client service for JPMorgan Retirement Plan Services. "We remain committed to offering personalized services to address the individual needs of every participant, which is the cornerstone of our Audience of One philosophy. By helping each plan participant realize how they want to spend their retirement, they can take actionable steps to attain the lifestyle they have worked towards and deserve." The study was conducted by Cambridge Brand Analytics, a division of Phoenix Marketing International, and results are based on responses from a national sample of 300 participants in employer-sponsored retirement plans. All participants are the primary or joint decision-maker on household investments and are over the age of 18. * The study was conducted in August, 2004. About JPMorgan Retirement Plan Services JPMorgan Retirement Plan Services provides bundled defined contribution services and administers investment options to 170 corporate clients, representing more than 904,000 retirement plan participants. The business unit administers plan assets of $57.7 billion. Through alliances with other best- in-class providers, JPMorgan Retirement Plan Services integrates services for defined contribution, defined benefit, deferred compensation and stock-based compensation plans. Its client list includes top-tier firms such as Procter & Gamble, International Paper and Newell Rubbermaid. The organization was founded in 1998 and initially operated as a strategic alliance between JPMorgan and American Century Investments. On June 1, 2003, JPMorgan acquired the firm, which employs more than 700 people and is headquartered in Kansas City, MO.
SOURCE JPMorgan Retirement Plan Services
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.