SYS-CON MEDIA Authors: Yeshim Deniz, Elizabeth White, Greg Ness, Sean Houghton, Glenn Rossman

News Feed Item

Newly Released Pentegra Retirement Services / Harris Poll Survey Results Show 65% of Employed Adults with a 401(k) Do Not Believe or Are Not Sure That Their 401(K) Plan Will Provide Enough Money for Them to Retire When They Want To

Pentegra Retirement Services urges people to take better advantage of their 401(k), particularly when it comes to taxes

WHITE PLAINS, N.Y., March 27, 2014 /PRNewswire/ -- Results of a Pentegra Retirement Services survey released today, conducted online by Harris Poll on its behalf in February 2014 among U.S. adults who are employed and enrolled in a 401(k) plan, revealed that 65% of these adults do not believe or are not sure that their 401(k) plan will provide enough money for them to retire when they want/plan to.  Yet, 75% of U.S. employees who are currently enrolled in a 401(k) plan think that 401(k) plans are the most important source of a person's retirement income.

Additional survey findings revealed that 45% of those adults enrolled in a 401(k) plan at their current job are contributing only 6% or less.  However, 42% of U.S. employees enrolled in a 401(k) plan have an understanding that you do not have to pay taxes on contributions made to the plan.

According to Rich Rausser, Senior Vice President of Client Services at Pentegra Retirement Services, "We cannot emphasize enough the importance of putting this money away and taking advantage of a 401(k) plan – not only for retirement, but also to save money on taxes.  Tax deferred contributions through a 401(k) plan lower your reported income, so the more you contribute the less taxable income you have.  It is a win-win. By saving $20 per week on a $400 weekly salary, you are left with $380. After subtracting the 28% federal tax amount, your take-home pay is $274. Put that same $20 into a (taxable) savings account, and your take-home pay drops to $268. That six dollar difference may not seem like much now, but multiply it over 52 weeks for 25 years and you are looking at pocketing an extra $7,800."

The Pentegra survey shows that nearly two thirds – 65% -- of those with 401(k) plans do not believe or are not sure that their 401(k) plan will provide enough money for them to retire when they want/plan to, and Rausser says that this is discouraging news.  "The fact is that you need to try to save enough to provide income replacement of 80% to 90% of your annual pre-retirement income -- for each year in retirement --  in order for you to enjoy a lifestyle similar to the one you have now. "

In addition, the Pentegra survey revealed that three-in-ten (31%) of U.S. employees who are currently enrolled in a 401(k) plan admit they have no understanding of where or how their 401(k) contributions are being invested.  Furthermore, 37% of U.S. employees who are currently enrolled in a 401(k) plan admit that as long their 401(k) funds are there for them when they want them, they are not concerned with how they are invested in the meantime. 

Rausser encourages people to have a greater understanding of the process.  "People really need to have a basic knowledge of how their money is being invested and how the process works.  This is your hard earned money and your future.  Take the time even just annually to sit down with someone in charge of your plan. Ask questions and get answers you understand."

On an encouraging note, 63% of U.S. employees who are currently enrolled in a 401(k) plan have increased their contribution(s) at some point.  Only 19% of U.S. employees who are currently enrolled in a 401(k) plan have never increased their 401(k) contribution(s). 

"Increasing your contribution every year is the key to retirement planning success," adds Rausser.  "Each time you get a raise, increase your contribution by at least 1% annually—but even better, 2%.  A simple way to do this is to add an auto escalation feature to your plan, so that contributions are increased automatically on an annual basis—put savings on auto-pilot so that participants don't have to think about it."  

Other highlights of the Pentegra survey include:

  • On average, the last time U.S. employees who are currently enrolled in a 401(k) plan increased their contribution was 2.4 years ago.
  • For those with total household income (HHI) of $50k-$74.9k, they most recently increased their contributions on average 2.6 years ago.  Those with HHI of $100k or more, on average, increased their contribution most recently 2.5 years ago.  Both are significantly longer ago than the average of 1.2 years when those with HHI of less than $50k most recently increased their contributions.
  • Respondents who contribute mowwre than 10% of their salary to their 401(k) plan most recently increased their contribution on average 3.3 years ago, significantly longer than the average of 2.1 years ago that those who contribute 10% or less of their salary say they increased their contributions.
  • Over two-thirds (68%) of U.S. employees who are currently enrolled in a 401(k) plan do not expect to use their 401(k) until they are required to take the mandatory minimum distribution (at age 70 ½).
  • Nearly two-in-five (37%) of U.S. employees who are currently enrolled in a 401(k) plan admit that as long their 401(k) funds are there for them when they want them, they're not really concerned with how they are invested in the meantime.
  • About one-third (32%) of U.S. employees who are currently enrolled in a 401(k) plan believe that starting a 401(k) later in life with larger contributions will yield the same results as if you had started at a younger age with smaller contributions.

Survey Methodology
This survey was conducted online within the United States by Harris Poll on behalf of Pentegra Retirement Services from February 10-12, 2014 among 2,059 U.S. adults ages 18 and older, among whom 446 are employed full-time/part-time and are currently enrolled in a 401(k) plan. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated.   For complete survey methodology, including weighting variables, visit

About Pentegra
Pentegra Retirement Services is a leading provider of retirement plan solutions to organizations nationwide. Founded by the Federal Home Loan Bank System in 1943, Pentegra offers a full range of retirement programs, including 401(k) plans, Defined Benefit Pension plans, Cash Balance plans, 412(e)(3) Fully Insured Defined Benefit plans, Split Funded Defined Benefit plans, KSOPs, ESOPs, Profit Sharing plans, Age-Weighted plans, New Comparability plans, 457(b) and 457(f) plans, 403(b) plans, 401(a) plans, Section 79 plans, Non-qualified Executive Benefit and Director plans, benefits financing solutions using BOLI and a broad array of TPA services. For more information, go to

Media Contact: 
Rodi Rosensweig
[email protected]

SOURCE Pentegra Retirement Services

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrateg...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
DevOps is all about agility. However, you don't want to be on a high-speed bus to nowhere. The right DevOps approach controls velocity with a tight feedback loop that not only consists of operational data but also incorporates business context. With a business context in the decision making, the right business priorities are incorporated, which results in a higher value creation. In his session at DevOps Summit, Todd Rader, Solutions Architect at AppDynamics, discussed key monitoring techniques...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect...
What do a firewall and a fortress have in common? They are no longer strong enough to protect the valuables housed inside. Like the walls of an old fortress, the cracks in the firewall are allowing the bad guys to slip in - unannounced and unnoticed. By the time these thieves get in, the damage is already done and the network is already compromised. Intellectual property is easily slipped out the back door leaving no trace of forced entry. If we want to reign in on these cybercriminals, it's hig...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to th...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will w...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
SYS-CON Media announced that Centrify, a provider of unified identity management across cloud, mobile and data center environments that delivers single sign-on (SSO) for users and a simplified identity infrastructure for IT, has launched an ad campaign on Cloud Computing Journal. The ads focus on security: how an organization can successfully control privilege for all of the organization’s identities to mitigate identity-related risk without slowing down the business, and how Centrify provides ...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, focused on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud platfo...