Here is some interesting information about how workers view their 401k plan. When evaluating your 401k there are several things to consider.
- Investment option mix. Good selection of low-cost, diverse mutual funds is desirable, but too many is counterproductive. Diverse means equity funds (large cap, medium cap and small cap), international funds, bond funds and perhaps some form of stable value fund. Target date funds may be desirable for some investors.
- Employer contributions. The greater the match the better and a 100% match on a 3% employee contribution is generally better than a 50% match on a 6% employee contribution.
- A high permitted employee contribution. Even if the employer match ceases at the employee contribution level of 6,7 or 8%, the employee should be permitted to contribute much more
- Availability of Roth contributions. Building for maximum net income in retirement is desirable.
- Availability of investment advice.
Nine in 10 employed U.S. investors with a 401(k) plan view the retirement savings tool positively. For allocation advice, all age groups value personal financial advisers, although younger investors augment advice with digital tools.