Three-quarters of defined contribution plan participants are projected to fall short of what they will need in retirement, said Christopher L. Jones, chief investment officer at Financial Engines.
In addition, he said participants under age 40 saved less in 2009 than in 2008, and two-thirds of participants have poor asset allocations or the risk in their portfolios is inappropriate.
The survey used a benchmark of 70% of preretirement income, including Social Security.
The survey of 270 employers with a total of $200 billion in DC assets was conducted between September and December 2009.
During his speech Wednesday, Mr. Jones praised auto enrollment and auto escalation. “Plan design matters. Participants in auto enrollment are better off,” he said.