February 19, 2013 (PLANSPONSOR.com) - Recent LIMRA research revealed that employees who have access to a defined contribution (DC) plan through their employers are more likely to have saved for retirement.
LIMRA found that among those with DC plan access through their current employers, 95% have at least some household retirement savings, versus 73% of those with no DC plan access. Looking at employees with less than $100,000 in household income, 93% of those with access to a DC plan have at least some household retirement savings, compared to 68% of those with no DC plan access. LIMRA’s consumer research shows that four in ten U.S. workers are saving less than 3% towards retirement, and 80% of U.S. workers acknowledge that they need to save more to be on track for retirement. LIMRA suggests that as a society we need to find a way to encourage American workers to save and plan for retirement, starting at the beginning of their career.