Get more! Sign up for PLANSPONSOR newsletters.
Analysis Shows Plan Availability, Participation Dipping in 2005
An analysis of the Census Bureau’s Current Population Survey (CPS) showed that there were 52.5 million private-sector workers age 25 to 64 at companies featuring a retirement plan in 2005 – down from 53.1 million the year before. Meanwhile, the number of plan participants came in at 43.1 million in 2005 – down slightly from 2004.
According to a Congressional Research Service (CRS) analysis of the CPS focusing on private-sector workers age 25 to 64 who were employed year-round, full-time in 2005:
- the percentage of workers whose employer sponsored a retirement plan fell from 61.8% in 2004 to 59.7% in 2005.
- the percentage of workers who participated in an employer-sponsored retirement plan declined from 53.4% in 2004 to 51.6% in 2005.
- only 25.3% of workers at firms with fewer than 25 employees participated in an employer-sponsored retirement plan in 2005, compared to 45.2% of workers at firms with 25 to 99 employees and 65.4% of workers at firms with 100 or more workers.
According to the CRS document, there was relatively little difference in plan participation among men and women who were employed full time: 51.4% of men and 52% of women participated in an employer-sponsored retirement plan in 2005.
Also, only 42% of private-sector workers age 25 to 34 who
were employed year-round, full-time participated in an
employer-sponsored retirement plan in 2005, versus 55.2%
of workers over age 35.
By race, Black, Hispanic, and other non-white workers
were less likely to have participated in an
employer-sponsored plan. Fifty-seven percent of white
workers were in a company-sponsored plan in 2005,
compared to 46.5% of black non-Hispanic workers, 29% of
Hispanic workers, and 48.8% of other non-white workers
(mainly Asian-American and Native American
workers).
Not surprisingly, participation rates among lower-paid
workers were less than their higher-paid counterparts.
Only 27.5% of workers whose earnings were in the lowest
quartile in 2005 (those with earnings under $25,000)
participated in a retirement plan at work, compared to
70.3% whose earnings were in the top quartile (those with
earnings above $60,000).
The percentage of part-year or part-time workers in the
private sector whose employer sponsored a retirement plan
was 39.9% in 2005, down from 41.5% in 2004. The
percentage of part-year or part-time workers in the
private sector who participated in an employer sponsored
retirement plan fell from 24.8% in 2004 to 24.4% in
2005.