Why 401(k) Savers Are Like Bad Boyfriends

Why 401(k) Savers Are Like Bad Boyfriends

NEW YORK (MainStreet) — When it comes long-term relationships with their 401(k)s, workers, it seems, are kind of like bad boyfriends. They're eager to get started and say the relationship is really, really important, but their attentions fade.

That's the essence of a study by brokerage firm Charles Schwab. The findings underscore the value of good "defaults" in plan design, to steer employees to sensible investment choices when they can't be bothered to do it themselves.

The survey of 1,000 workers found that 87% described the 401(k) as a "must have" benefit, ranking it above disability insurance, life insurance and even more vacation days. But employees were less likely to get professional help in choosing and managing 401(k) investments than they were to get help doing taxes or changing the oil in their cars.

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