COLUMBUS, Ohio, Feb. 16 /PRNewswire/ -- Many workers are severely undereducated about 401(k) plans and retirement planning, and they may let their lack of information and fear of the stock market prevent them from investing for retirement. This is a key finding of a new survey from Nationwide Financial (NYSE: NFS - News), the country's leading provider of 401(k) plans.*

"This survey illustrates the critical condition of many Americans' retirement plans -- the major risk of missed opportunity and the need for better financial education," said Michael Butler, senior vice president of NFS Distributors Inc., a division of Nationwide Financial. "Many people don't have a realistic picture of their retirement needs, and what they don't know can hurt them. It is crucial to learn about retirement planning, regardless of age or income. Prepare a smart plan to reduce your risk of future financial woes and take advantage of every opportunity to help improve your financial security."

The survey, which Nationwide Financial commissioned to provide consumers information to help them make the right retirement planning choices for their needs, examined three groups of people: workers who currently participate in a 401(k) plan, workers who have access to but choose not to contribute to a 401(k) plan, and workers who are uncertain if their employer offers a 401(k) plan.

Apprehension about the economy may hinder workers from learning about their 401(k) plans. Workers not participating in a 401(k) plan are 15 percent less confident in the stock market than those who participate.

Also, the Nationwide survey found an alarming number of survey respondents do not understand what a 401(k) plan is or how it can fit into financial plans. Among workers surveyed who have access to a 401(k) plan but choose not to participate:

• More than one in six say they will never stop working and don't plan to retire (17 percent).
• Almost 30 percent say they're counting on Social Security to be the largest source of funding for their retirement, and 20 percent will use "other personal savings".
• Four in ten (42 percent) say they do not contribute to a 401(k) plan because they cannot afford it, and 12 percent say they have more pressing saving priorities. Twenty-two percent say they plan to invest, but haven't gotten around to it yet.

Respondents who are uncertain if their employer offers a 401(k) plan cited not knowing what a 401(k) plan is as their greatest reason for not finding out if their employer offers one (29 percent). Other reasons preventing them from finding out include: "I don't need one anyway," "I don't know who to ask," "I'm too busy" and "I'm reluctant to ask."

Even workers who are participating in a 401(k) plan need better retirement plan education. Many do not understand some common investing terms, such as "asset allocation." Almost half believe it has to do with taking advantage of a company match (48 percent). Others say it is about choosing a percentage of salary to invest in a 401(k) plan, or having money taken out of their paycheck to go into a 401(k) plan.

Butler strongly encourages employees to seek out more information about their retirement plans. "To best prepare for retirement, find out the meaning of things you don't understand," Butler explained. "Your investment professional, the Internet and investing books can help you. Knowledge is power. The more you understand, the better investing decisions you can make."

The survey polled approximately 2,600 workers and was conducted by BIGresearch, a consumer market intelligence firm based in Columbus, Ohio. For more information about BIGresearch visit www.bigresearch.com .

According to Plan Sponsor magazine, Nationwide Financial is the top qualified plan provider in the country*. With more than 50,000 plan sponsor clients(1), the company is also endorsed by the American Institute of Certified Public Accountants as its member benefit retirement plan provider and as a preferred retirement plan provider for CPA clients.** The company is dedicated to going the extra mile for plan sponsors and participants by providing innovative retirement program choices.

Nationwide Financial, based in Columbus, helps customers and institutional clients by providing relevant products, services, tools and information through it annuity, life insurance and retirement plan offerings.

The parent company, Nationwide, is a leading provider of diversified insurance and financial services to more than 18 million customers across the United States, and is ranked No. 111 on the Fortune 500 based on revenue. For more information, visit or www.nationwide.com or www.nationwidefinancial.com.

• Plan Sponsor magazine listed Nationwide Financial as the top qualified retirement plan provider in the country (June, 2003 based on number of plans).
• Pursuant to an endorsement agreement, the AICPA receives compensation from Nationwide Life Insurance Company and Nationwide Trust Company, FSB.
• (1) Based on 3rd Quarter, 2003

Neither Nationwide nor any of its representatives provide tax, legal, or investment advice. Federal tax laws are complex and subject to change. Please consult with your advisor for answers to your specific questions.

Nationwide, the Nationwide frame, and Nationwide Financial are federally registered service marks of Nationwide Mutual Insurance Company.

     Media Contact:
     Bethany White
     614-677-8516
     whiteb16@nationwide.com

     Tiffany Swinehart
     614-677-4297
     swinehj@nationwide.com