Benefits February 19, 2013
Employees With DC Plan Access Save More
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.
Reported by Rebecca Moore
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.