Fully two-thirds (66%) of plan participants surveyed by Spectrem Group say they are counting first and foremost on 401(k) and similar plans to provide the income they need during retirement.

That percentage dwarfs those who plan to tap personal savings and investments in taxable accounts (48%), IRAs (32%), defined-benefit plans (31%), balances in a former employer’s retirement plan (21%) or income-producing real estate (20%).

Among other findings from the survey: Government employees are less likely than other plan participants to say defined-contribution plans will be used for income in retirement. Plan participants who have annual household incomes of at least $100,000 and those who work in the education and non-profit sectors are more likely than others to mention personal savings and investments in taxable accounts.

Those who have annual household incomes of at least $100,000 are the most likely to cite IRAs and income-producing real estate. Defined-benefit plans are mentioned most often by those who are 50 or older and those who work in the education, non-profit and government sectors.

Financial services providers must capitalize on this opportunity to help defined-contribution participants in planning for their retirement income needs.

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