J. P. Morgan report finds most 401k plan participants "unprepared"

A report by the J. P. Morgan Asset Management Group (see here).  A key finding from the report is as follows:

Defined benefit (DB) plans were designed to accumulate assets that would then provide a source of lifetime income past an employee’s retirement. The decline in popularity of these plans introduces challenges to employees who must now perform those calculations themselves. Today’s retirees are among the first to be doing so on a retirement program built predominantly in the defined contribution (DC) space, and they appear ill-equipped to translate their DC balances into an income stream at retirement. Research shows participants want and need income replacement projections, but most have neither access to that data nor an understanding of how to set goals for what they’ll need: 

• A large majority of participants state that in retirement they will need to know how much of their pre-retirement salary they will be able to replace each year.
• Nearly a quarter of participants aren’t sure what they are on track to receive when they stop working.
• Only 26% of participants state that they have a goal of meeting a percent of their income in retirement.
• Yet 69% acknowledge that they don’t read the investment information that is provided to them.