Workers are still most likely to follow advice from a human professional (95%) over computer-generated advice (74%).Īs in past years, the survey continues to underscore that advice plays a pivotal role in workers’ confidence. Half of workers would feel comfortable asking artificial intelligence tools like ChatGPT for help with financial planning, but for now, actual adoption is very low (4%). “That’s double what workers expect from the next closest source, which is Social Security at 20% of retirement income.”Ĭompared to last year, more workers are also saving for retirement in a savings accounts (68% vs 61%), investing in an IRA (47% vs 33%) and investing through a brokerage account (38% vs 29%) as they look to augment their primary retirement fund with other methods of saving and investing.įinancial advice: new technologies emerge but workers still prefer the human touch "Placing such a high priority on their 401(k) is not surprising since it is their primary retirement resource, with workers counting on it to deliver 40% of their retirement income,” said Marci Stewart, Director, Communication Consulting and Participant Education for Schwab Workplace Financial Services. When considering a new employer, 88% of workers say it is a must-have benefit and three in four would refuse a new job if it did not offer a 401(k) plan. The 401(k) is becoming a non-negotiable for job seekers. Confidence may have taken a hit, but savers are still hopeful: nearly half still feel somewhat likely to reach their goals and only 14% feel they are not at all likely to reach their goals. While this amount hasn’t shifted drastically, only 37% of workers think it’s very likely they’ll achieve this target, down by 10% from last year. Workers now believe they’ll need to save an average of $1.8 million for retirement, compared to $1.7 million last year. Despite these challenges, retirement saving continues to be a priority for workers, who have maintained their 401(k) savings rates and largely stayed on top of their 401(k) investments over the past year.” “While many workers are trying to cut back on spending, some costs are unavoidable and certain areas of their finances have taken a hit. “When inflation persists for an extended period of time, workers are inevitably going to feel a deeper impact on their wallets,” said Brian Bender, Head of Schwab Workplace Financial Services. Nearly eight in ten (78%) say these conditions are impacting their spending and saving habits, and 36% plan to delay retirement as a result. The annual nationwide survey of 401(k) plan participants finds that 62% of workers see inflation as an obstacle to saving for a comfortable retirement, up from 45% last year, and 42% say stock market volatility is an obstacle, up from 33% last year. Inflation and market volatility are impacting workers’ ability to save for retirement to a greater extent than last year, according to a new survey from Charles Schwab. Workers maintain savings rates but feel less confident about reaching their goals
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