If President Bushs new retirement savings options make it through Congress, the majority of employees say they would use the new accounts, a recent survey finds. Conducted by Strong Financial Corporation, 65.5% of savers said they would use Employer Retirement Savings Accounts (ERSAs), which look and feel like 401(k) plans. Nearly 58% would use the IRA-replacement Retirement Savings Accounts (RSAs), and some 71% would save through Lifetime Savings Accounts (LSAs).
Almost 60% of respondents said the new accounts would help them save more, yet the freedoms they permit lead 45% to worry about the temptation to use their savings for other purposes than retirement. Some 33% polled say the provision that allows withdrawals to be taken at any time without penalty is the most appealing feature of the new plans.