In fact, a new LIMRA survey shows 84% of people participating in defined contribution (DC) retirement plans feel it is their responsibility to fund their own retirement. The survey shows that 77% of working Americans believe all workers should have access to retirement savings plan at work and that such plans are an effective way to save for retirement. Six in 10 Americans agree that those who save in a DC plan specifically are likely to achieve a secure retirement, according to LIMRA.
“It is encouraging to see that so many Americans understand that their action or inaction during their working years can determine their financial security in retirement,” says Alison Salka, senior vice president and director of LIMRA research. “Systematically saving throughout one’s career is essential for the majority of Americans to attain their preferred retirement lifestyle once their working years come to an end.”
Other survey results show a strong majority (85%) of DC plan participants believe these plans are an effective way to save for retirement. Three in 10 American workers believe their DC plan savings will represent the primary source of retirement income. This expectation is more pronounced among younger workers and those with access only to a DC plan. Half of DC plan participants and nearly four in 10 plan participants under age 45 believe savings in their DC plans will be the primary source of retirement income.
Not surprisingly, LIMRA says significantly more workers who choose to participate in their DC retirement plan are confident that they will realize their chosen retirement lifestyle compared with non-participating workers (45% versus 32%).
“Our research shows that defined contribution plans provide workers the ability to take responsibility for their retirement security,” Salka notes. “The data suggests that workers who participate are afforded the confidence that they will achieve their chosen retirement lifestyle.”
These findings are based on a nationally representative survey of 1,013 Americans fielded in April 2014. More information on this and other LIMRA research is available at www.secureretirementinstitute.com.