American retirement plan participants are in a “crisis of confidence,” according to a new survey from J.D. Power.
Only 17% of plan participants are “very confident” about their retirement preparedness, according to the survey of 8,332 retirement plan participants conducted from February through March. Among baby boomers, only 15% are very confident, J.D. Power says.
Charles Schwab scored highest in retirement plan satisfaction in the large plan segment, followed by Nationwide and Bank of America, according to the survey. Bank of America ranks highest in the medium plan segment, however, followed by Fidelity Investments and Nationwide, J.D. Power says. In the small plan segment, Fidelity ranks highest, followed by Nationwide and John Hancock Retirement Plan Services, according to the survey.
To increase participants’ confidence in their plans, plan providers will need to ensure access to human advisors as well as provide a robust digital experience, J.D. Power says.
“Put simply, when retirement plan participants feel confident about their retirement, they are much more likely to bring assets to their primary plan from other sources, and to keep those assets with the provider after leaving their current job,” Mike Foy, senior director of wealth management intelligence at J.D. Power, says in a statement.
“To build that confidence, providers need to deliver an effective combination of high-quality human interaction, useful online tools and thoughtfully- designed digital self-service options.”