The ICI’s sixth annual survey tracking sentiments and actions by consumers shows that people have a very favorable impression of the current retirement system, especially 401(k) and other DC plans. About two-thirds of people surveyed had very favorable impressions, as did 80% of those in DC plans. Nine out of 10 said it helped them think long term.
Other highlights of the ICI survey include:
• 40% said they would probably not be saving if it were not for their DC plan.
• 68% were less worried about the vicissitudes of the market.
• If not for the tax incentive, 90% would not be saving.
• Nearly all like the ability to choose and control their investments.
• 80% were not favorably disposed to replacing their ability to choose with a government bond.
• Most strongly opposed reducing or eliminating the tax deferral of DC plans — even those who don't participate in one.
Though the ICI represents mutual fund companies that have an interest in seeing the current system continuing, the results nonetheless show that the current U.S. retirement system featuring DC plans and IRAs is very popular with consumers (and voters) who would be clearly upset if there were major reductions in tax deferrals or their ability to manage their investments. Maybe they know something the anti-401(k) faction doesn’t?
