New Research Highlights Need to Give Employees a Voice in 401(k) Education

Aug 19, 2015, 14:00 ET from Widgix, LLC

BOULDER, Colo., Aug. 19, 2015 /PRNewswire/ -- The vast majority of employees would choose one-on-one training over classroom-style learning for guidance in setting up their 401k accounts, according to the results of the survey released by the retirement planning company PlanVision.

"The data quickly revealed that employees are looking for personalized, one-on-one guidance," said PlanVision founder Mark Zoril. "An overwhelming majority wanted help choosing investments during the enrollment process."

As of 2013, $5.37 trillion was invested in private sector defined contribution plans like 401ks, up from $104 billion in 1978. This increase is making employees increasingly responsible for their financial health in retirement; however, few feel equipped to handle the task.

This is where employers can help by providing the right kind of retirement education, according to the PlanVision survey results. 

"Over half our respondents didn't know if they were on track for retirement, and most don't have a strong understanding of how plan fees are impacting their plans in the long term," Zoril said.

Despite this knowledge deficit, PlanVision's survey discovered that after having fees explained, 95% of respondents felt they understood them.

Even more important, of those who indicated they understood plan fees, more than 95% of those also understood how fees could impact their retirement accounts over the long term.

The full report is available for download, as is an overview infographic.

About the Survey:
Using SurveyGizmo software, employees took the 2-4 minute survey as they enrolled in an employer-based retirement plan. The data was collected over a 12-month period from both profit and nonprofit employers. 

About PlanVision:
Plymouth, MN-based PlanVision was founded by Mark Zoril, a 20-year veteran of working directly with employers on retirement education. The company helps small to mid-sized employers improve their workplace retirement plan by reducing unnecessary plan costs and enhancing employee communication.

About Widgix:
Widgix, LLC is a software company that was founded in Boulder, Colorado in 2006. The company has 63 employees with additional offices in London, UK and data storage centers in North America and Europe. The flagship product, SurveyGizmo, collects 8.9 million survey responses per week from around the globe.

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