Market risk, longevity still worry plan participants

Market risk and longevity risk continue to be the top concerns for retirement plan participants, according to a study by American Century Investments.

While about two-thirds of participants say they know how much to withdraw for living expenses, about 40% said they worry about running out of money in retirement, with seven out of 10 saying they need a “little bit of guidance” on how to withdraw money from their retirement accounts.

American Century surveyed 1,500 people with full-time job who were between the ages of 25 and 65.

Other survey highlights:

• More than half of respondents expressed an interest in having investments in their plan that meet environmental, social and corporate governance standards.
• Not saving more continues to be participants’ biggest life regret, with 35% voicing this regret, which was more important to them than doing better in their career, doing better in personal relationships or even doing enough to enjoy life.
• Two out of three survey respondents believe companies should automatically enroll employees at a 6% default rate, and just over 60% believe employers should automatically enroll workers and then automatically increase the default rate each year. Four in 10 say enrollment, contributions and default investments should be completely automatic for everyone.

[More: The tension in 401(k)s: Autopilot with as much guidance as possible]