While Target Dated Funds seem to be rising in popularity as a retirement-related investment, a recent survey by AllianceBernstein LP shows that participants are not necessarily investing in them correctly.

While in recent years employers have taken advantage of automatic plan features, such as automatic enrollment, this reach is now extending into the realm of investments. A recent article in the “Wall Street Journal” points to a growing trend of employers choosing investments for their employees. The concern is that employees are choosing investments that are either too conservative or too risky, but with the same end result—not saving enough for retirement.

A retirement guide provided by the Internal Revenue Service advises all individuals to take these necessary steps when planning to save for their retirement:

1.  Convenient Savings: When you enroll into your company’s 401(k) plan, you decide what percentage of your income is deducted each pay period and deposited directly into your 401(k) account. You never see the money, so you never get tempted to spend it. You automatically save for your retirement each time you are paid!

1. You Don’t Want to Work Forever: If you want to stop working one day, you are going to have to think about how much income you will need to live without the weekly income your employer provides you for your services.  Social Security provides a basic level of income that you will have to build on top of to ensure a comfortable retirement.  Pensions have provided about 1/3 of retirees with some added income each month.  Look for a job that comes with a pension or savings plan. Take advantage of this benefit and start saving.

In 2009, The House of Representatives and the U.S. Senate unanimously designated this week, October 18th through October 24th, as National Save for Retirement Week. The purpose is to raise awareness to Americans about the importance of saving for retirement as well as exposing various tools, tips and options to help increase financial security for all American workers. With longer life expectancies and rising health care and living costs, it is critical that Americans understand the importance of saving for their future, now.

While the stock market may be up since its lows in March, many 401(k) participants are still feeling the sting of what the recession has done to their portfolio. The average stock fund has fallen 28% since the market’s peak on October 9, 2007, according to an article in USA Today. What can participants do to rebuild their accounts? USA Today offered some tips:

The Internal Revenue Service (IRS) recently released the Notice 2009-82 (PDF) as noted in a recent article on WebCPA.com. This notice provides guidance to retirement plan administrators, plan participants and retirees on some recent changes affecting required minimum distributions as a result of the Worker, Retiree, and Employer Recovery Act of 2008.