It’s the day before you retire, and you’ve built a small fortune in your 401(k) plan. What will you do with your savings?
“I don’t know” is the answer for more than 3 out of 10 workers.
Those were the findings from a recent survey by the Employee Benefit Research Institute, a research group that focuses on health, savings and retirement. EBRI conducted an online poll of 2,042 adults in January.
“In most cases, you would expect people to do a couple of things: You wouldn’t use all of it to buy lifetime income and you’d want to keep some of it for emergencies,” said Craig Copeland, a senior research associated at EBRI.
“It’s troubling that they can’t recognize what they think they’d be doing,” he said.
Here’s why it makes sense to develop an end-game for your 401(k) savings.