Julie Jason: Many 401(k) participants would like advice.

Just how important are 401(k) plans to employees? It always helps to ask.

Studies such as the Schwab Retirement Plan Services Inc. survey of last August show that 401(k) participants are “relying heavily on their workplace retirement plans to help them meet their long-term goals.”

In fact, 88 percent said a 401(k) was a “must-have” benefit, and 90 percent said they would think twice before accepting a job that didn’t offer one. Six out of 10 401(k) participants surveyed reported that they expected their 401(k)s to be their largest source of retirement income.

Though most participants (72 percent) said they feel “on top of ” their 401(k) investments, many still thought they would benefit from professional help. Half (50 percent) were extremely/ very confident in their ability to make the right 401(k) investment decisions on their own, but 77 percent felt that level of confidence if they had the help of a financial professional, and 52 percent stated they would expect better investment performance with professional advice.

Survey respondents also wanted help with these issues:

1) 43 percent want help with calculating how much money to save for retirement;

2) 39 percent want to receive specific advice on how to invest their 401(k)s;

3) 39 percent want help knowing when they can afford to retire;

4) 36 percent want to know how to figure out their expenses in retirement.

“401(k) savers definitely have the right idea but could use help with the particulars,” added Catherine Golladay, senior vice president of 401(k) Participant Services and Administration at Schwab Retirement Plan Services. “The good news is that many 401(k) plans today offer investment advice, and that advice isn’t meant just for the affluent — it’s meant for everyone. No matter how much money you have to save and invest, a professional can help you maximize its potential.”

Participants clearly recognized the value of advice, but there was a gap between what they said they desired and what they felt they deserved. While the majority (71 percent) would have liked personalized investment advice specific to their 401(k)s, only about half (53 percent) believed that their current financial situations actually warranted professional help. And while most (73 percent) thought they knew the percentage of salary they should save in a 401(k), about one-half (54 percent) said they knew how much money they actually needed to accumulate for a comfortable retirement.

The study also reviewed regrets. Two-thirds of participants wished they had spent less in the past to save more for retirement, particularly on meals out, expensive clothing, new cars and vacations.

This type of data is helpful for employees and sponsors alike. For example, the simple tendency we all have to value immediate consumption over some distant future reward (retirement security) is a bias that can be addressed.

Mark Riepe, senior vice president of the Schwab Center for Financial Research offered this advice: “A strategy to overcome this bias is imagining your future self asking your present self, what are you going to do for him or her? One of the first things you can do is to educate yourself about your plan’s options. Another way of helping your future self is to increase your savings rate to your employer match at a bare minimum. Don’t stick with the default rate if it doesn’t make sense for you. It’s also important to make sure your portfolio is diversified and that your investments aren’t relying too much on any one particular sector or asset class . ... We encourage everyone, no matter your financial situation, to ask for help.”

Indeed.

The Schwab survey was based on 1,000 interviews of 401(k) participants ages 25-70 who worked for companies with at least 25 employees. The study can be found at aboutschwab. com/schwab-401kparticipant-survey-2018.