Retirement plan investors are struggling with turbulent markets and record-setting inflation. Many of them also face another challenge: managing their accounts online.

Thats according to a new J.D. Power survey of investors, which found that retirement plan providers are falling short when it comes to providing easy-to-use digital interfaces and tools.

Retirement investors are under a great deal of financial stress right now and they are looking to their plans websites and apps for information and guidance, said Mike Foy, head of wealth intelligence at J.D. Power. Unfortunately, many are not finding what they need and end up having to call customer service for help.

The survey comes at a difficult moment for retirement plan participants seeking to build nest eggs for their golden years. Markets have tumbled this year and inflation has soared. A majority of retirement plan investors (53%) now report that their savings are financially unhealthy, according to the J.D. Power survey.

A recent Federal Reserve report underscores the point: Total U.S. household net worth decreased by $6.1 trillion in the second quarter, primarily driven by a drop in stock prices. At the same time, household debt grew at an annual pace of 7.4%, according to the Federal Reserve.

The J.D. Power survey said that during the past year, the percentage of retirement investors classified as financially healthy has dropped to 47% from 60%. More than a quarter of investors now fall into the financially vulnerable category, according to the survey. At the same time, overall satisfaction with their retirement plans digital experience declined.

J.D. Powers survey also said that plan providers are missing the mark on digital account management. Just over a third of investors say they can manage their accounts digitally without contacting customer service. And only 22% say retirement plan websites and apps offer proactive guidance and help, according to the survey.

This is a moment-of-truth opportunity for plan providers, Foy said. When they get the digital experience right, they see a very significant lift in the likelihood of growing and retaining participant assets long after they have left their current employer.

When they get it wrong, however, retirement plan participants are more likely to take their assets elsewhere. Average job tenure for millennials and members of Gen Z is less than three years, according to J.D. Power.

J.D. Power polled 7,069 retirement plan participants for its survey, which was conducted in May and June.

Write to Andrew Welsch at andrew.welsch@barrons.com

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Retirement Plan Providers Are Missing the Digital Mark - Barron's