September 26, 2012 (PLANSPONSOR.com) – Fewer American families are
participating in a retirement plan at work, but more of those with a plan are
in a 401(k), a report found.
According to a report by the Employee Benefit Research
Institute (EBRI), at the same time 401(k) plan ownership is rising, ownership
of individual retirement accounts (IRAs) is sliding.
In an analysis of the period 2007 to 2010, EBRI found that the
share of American families with a member in any employment-based retirement
plan from a current employer increased steadily, from 39% in 1992, to 41% in
2007, before declining to 38% in 2010.
Ownership of 401(k)-type plans among families participating
in a retirement plan more than doubled, from 32% in 1992, to 79.5% in 2007, and
increased again in 2010, to 82%. But the percentage of families owning an IRA
or Keogh retirement plan (for the self-employed) declined, from 31% in 2007, to
28% in 2010. In addition, the percentage of families with a retirement plan
from a current employer, a previous employer's defined contribution (DC) plan,
or an IRA/Keogh declined, from 66% in 2007, to 64% in 2010.
As in the past, EBRI found that retirement plan assets
account for a growing percentage of most Americans' financial wealth, not
counting the value of their home. The median percentage of families' total
financial assets comprised by DC plan assets and/or IRA/Keogh assets (assuming
the family had any) increased from 2007 to 2010, and accounted for a clear
majority of these assets: