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Benefits October 3, 2013
Interest, Access Linked for Retirement Plans
October 3, 2013 (PLANSPONSOR.com) – Nearly three out of four workers likely to be focused on retirement savings have access to an employer-sponsored retirement plan, according to an updated study released by the Investment Company Institute.
Reported by John Manganaro
The study, titled “Who Gets Retirement Plans and Why,” covers data gathered during 2012, a year in which 74% of workers in categories likely to be focused on saving for retirement had the option to do so through either a defined benefit (DB) or defined contribution (DC) plan provided by their own workplace or through a spouse’s employer.
Survey researchers measured participation among those with access to DC or DB plans at 93%. Results also suggest a strong link between an employee’s savings goals and the likelihood that he or she will work for an employer that sponsors a retirement plan of some type.
Other topics covered by the study include qualitative analysis of the reasons why workers save. Among younger and lower-income households, workers are more likely to save to fund education, purchase a home or other significant expenses, or maintain emergency cash on hand. Older and higher-earning households are more likely to save primarily for retirement.
Among all workers age 21 to 64, the rate of access to employer sponsored plans is 50%. That percentage increases when selecting for older subsets of the population. Access among workers age 30 to 64, for example, is 60%.
A full copy of the 2012 study is available here.