On January 20, 2020, the Investment Company Institute (ICI) released their 2019 study regarding Americans view on 401k plans.
Here are some of the main findings:
- Confidence was highest, 81 percent, among individuals who hold DC (401k plans including solo 401k plans fall under this category) accounts or individual retirement accounts (IRAs).
- 76 percent of Americans had a favorable impression of DC plan accounts.
- Nine in 10 individuals with DC accounts agreed that these plans encouraged them to think about the long term, which made it easier to save for retirement.
- Most individuals with DC accounts (95 percent) agreed that it is important to have a choice in, and control of, the investments in their DC plan accounts.
- More than half indicated that they probably would not be saving for retirement at all if not for their DC plans at work.
- 87 percent wanted to preserve tax incentives for DC plans and nine in 10 disagreed with reducing the amount that individuals can contribute to DC accounts.
- 79 percent of individuals without DC accounts or IRAs opposed the idea of taking away the tax treatment of DC accounts.