Many retirees moving away from 401(k) plans to fund retirement

According to a recent survey conducted by a major financial company, a rising number of pre-retirees have begun moving away from 401(k) plans as their primary investment for retirement.

Overall, 64 percent of not-yet-retired investors responding to the survey expect their 401(k) plan to be a major part of their retirement income. By comparison, 33 percent of retired investors feel the same way. In addition, 44 percent of retirees claimed defined benefit pensions will be a "major fund source of retirement," compared to 34 percent of pre-retirees.

"This is a tale of two populations," said Joseph Ready, executive vice president and director of the company conducting the survey. "Retirees are feeling good about their pension."

However, Ready explained other investors without solid retirement plans have started to experience the challenges of a volatile stock market.

The company's report also showed that only 26 percent of investors who aren't retired have a written retirement plan in place, compared to 38 percent of retirees.

C1442