Advice can help 401(k) participants take control

Key takeaways:

• Professional advice can help 401(k) participants approaching retirement make better decisions about converting savings to income, yet fewer than half report recently receiving such guidance.
• Among participants who received advice, 64% worked with an advisor through their employer or plan (44% exclusively), while 55% sought advice independently from other sources (35% exclusively).
• The survey revealed that participants who received withdrawal advice tend to have better understanding, more confidence, greater control, and a plan in mind.

Advice can help 401(k) participants take control of retirement planning

The 401(k) industry plays a central role in helping millions of Americans save for retirement, and there is an increasing need for personalized financial guidance to help workers optimize contributions, manage investments, and plan for withdrawals, including the use of lifetime income.

Nuveen and the TIAA Institute surveyed 401(k) plan participants to better understand their experience with retirement planning advice, particularly about converting retirement savings to retirement income. Survey findings illustrate how professional advice plays a key role in helping 401(k) participants make informed choices by improving their understanding and boosting their confidence in withdrawing money for retirement.

This article explores these findings taken from the Nuveen and TIAA Institute Participant Sentiment Survey on Lifetime Income.

Want to learn more about these findings?

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