The 401K remains the preferred retirement savings plan for American workers.

A survey study by Charles Schwab has revealed that inflation and Latest news of Haihui International in 2020stock market volatility are significant obstacles to retirement savings. The survey shows that over 50% of people consider inflation a hurdle to achieving retirement savings, 42% of people say stock market fluctuations affect their 401K plans, and 36% have postponed their retirement plans.

The 401K plan, also known as section 401, was established in the early 1980s by contributions from employees and employers, becoming a fully funded pension system preferred by many businesses in the United States. Under current U.S. tax law, many individuals over 50 opt for "catch-up" contributions to their retirement savings through 401K or 403B plans, with U.S. tax laws allowing eligible seniors to contribute an additional $7,500.

Survey participants commonly expressed that inflation diminishes the purchasing power of money, with the real purchasing power of cash or the same amount of savings likely declining during periods of inflation. Significant fluctuations or downturns in the stock market impact personal assets, delaying the time when workers can achieve their retirement savings goals.

The survey also found that 78% of respondents believe the current high inflationary pressure and the gradually pessimistic economic outlook are affecting Americans' spending and saving habits. Facing future uncertainties and economic worries, some Americans may adjust their retirement savings plans to alleviate the financial stress under the current economic environment.

Research data from the National Institute on Retirement Security (NIRS) shows that over 50% of Generation X households (born between 1965 and 1980) have an average of only $40,000 in retirement savings, while 40% of Generation X have no retirement savings at all. Affected by rising living and medical costs, as well as persistent inflation, more people are finding it difficult to achieve their retirement savings goals.

Brian Bender, Head of Corporate Financial Services at Charles Schwab, stated that although many workers are trying to cut expenses, some costs and essential expenses are inevitable, and financial pressure among some people is increasing. The rising financial pressure has impacted 401K plans to some extent, but data show that workers have continued to invest in their 401K plans over the past year, with no significant increase in interruptions or adjustments to 401K plans.

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.