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February 19, 2004 at 07:00 PM
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A new survey by Nationwide Financial Services suggests quite a few members of the baby boom generation need professional guidance about planning for their retirement.
Although the survey did not specifically center on boomers, it clearly showed a significant number of them were among nonparticipants in 401(k) plans.
The survey found 26% of all workers declined to participate in their employers 401(k) plan.
Of these nonparticipants, 22% were between ages 45 and 54, a prime boomer group. Another 8% were on the brink of retirement, ranging in age from 55 to 64, according to Nationwide, in Columbus, Ohio.
Of those who did have a 401(k), 26% were 45 to 54, and 10% were between 55 and 64 years old.
Some of the other findings of the survey:
About 3% of workers did not even know whether their employer offered a 401(k) plan. Although most of those workers were relatively young, 18% were over the age of 44.
The survey also found that, of all those whose employers offered a plan, 26% did not participate. Yet 14% of these nonparticipants said they expected a 401(k) or other employer plan to be the largest source of funding for their retirement.
Around 42% of plan nonparticipants said they didnt contribute because they couldnt afford to, 12% said they had more pressing savings priorities and 22% said they simply hadnt got around to signing up.
