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.