How to save for retirement
More than half of U.S. workers plan to invest in 401(k) plans, according to a survey by Bankrate, and the investment industry has been getting more attention lately.
In September, the investment giant Citi launched its 401(K) investment options service, and today, Bankrate published a report on how to invest for retirement.
Bankrate compared the retirement needs of workers across various industries.
For workers in retail, hospitality, and retail related services, it found that nearly two-thirds plan to use 401(ks) as their primary retirement savings vehicle.
More than three-quarters plan to save at least $20,000 in retirement.
Among public sector workers, nearly a quarter plan to put in at least a $20K contribution.
For the construction industry, nearly two in five workers plan at least one-quarter of their retirement savings into 401(ki).
The survey also showed that the investment sector has struggled to get into the market, with only 14% of Americans saying they plan to contribute to the market by 2020.
The industry’s biggest challenge has been that it’s difficult to attract investment funds and investors due to its high cost of capital and its high costs of complying with regulators.
The survey said that the financial industry needs to invest more in technology and other capital assets, such as technology stocks, to compete.
The results of the survey were released just days after the Consumer Financial Protection Bureau announced it was launching a new rule aimed at making it easier for consumers to access affordable retirement savings plans.
The CFPB said that if consumers don’t have a retirement account, the agency will make it easier to create one by providing more options.
That could mean offering consumers the ability to create an IRA, which allows them to put their money into a single plan, or they could provide more flexibility in the amount they can contribute to a 401(kk) or other retirement savings plan.