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    Show Me the Finish Line  124  0 Kommentare 401(k) Savers Say They Want Help Understanding How Much They’ll Need for Retirement - Seite 2

    Income in retirement: Where will it come from?

    When it comes to building a retirement paycheck, participants expect 44% of it to come from a 401(k). The remaining 56% is expected to come from a range of different sources. Below are the top five sources identified by the participants in the study, along with the percentage they expect each source to contribute to their retirement paychecks:

    • 401(k) – 44%
    • Social Security – 17%
    • Savings and investments – 15%
    • Traditional pensions/defined benefit plans – 10%
    • Part-time work – 4%

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    Contribution rates reflect the importance that participants are placing in their 401(k)s. More than one in four (26%) say they contributed the maximum allowed in 2019. In addition, the average amount participants contributed to their 401(k)s was up 20% compared to last year’s survey: $10,562 in 2019 vs. $8,788 in 2018.

    Outside their 401(k), participants are more likely to be saving for retirement in a savings account versus investing in the markets. More than half (57%) say they are using a savings account to save for retirement, while less than half say they are investing for retirement in an IRA (48%) or a brokerage account (38%).

    “You want every dollar working as hard as possible for you when it comes to retirement savings,” said Golladay. “While consistent, disciplined savings habits are critically important, the investment choices typically available to you through an IRA or Health Savings Account may have more growth potential, for example, than deposits in a regular savings account.”

    Retirement spending: Anticipating healthcare expenses

    More than three-quarters (77%) of 401(k) participants are offered a Health Savings Account (HSA) and almost half (45%) currently use it.

    For many, their HSA is helping to pay for their current health insurance deductibles or unexpected short-term healthcare costs. In addition, two in five (41%) currently are using their HSA to save for healthcare costs in retirement. In 2019, 33% contributed enough to their HSA to cover their immediate needs and set aside money for retirement.

    “Healthcare is one of the leading expenses that people need to plan for in retirement. Like 401(k)s, HSAs are another way to save and invest your money now to help you prepare for the future,” said Golladay. “Increasingly, workplaces are adding HSAs to their line-up of financial wellness solutions for employees, and long term, this will be another important building block for people’s retirement security.”

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    Show Me the Finish Line 401(k) Savers Say They Want Help Understanding How Much They’ll Need for Retirement - Seite 2 The area where 401(k) participants say they could most use help is understanding how much they’ll need to save for retirement, according to a nationwide survey of 1,000 401(k) plan participants from Schwab Retirement Plan Services. This press …