Benefits April 11, 2007

Poll: 14% of U.S. Adults Participating in 401(k) Plans

April 11, 2007 (PLANSPONSOR.com) - A low 11% of workers under age 35 say they are participating in their company's 401(k) plan, according to a recent poll for the American Institute of Certified Public Accountants (AICPA).

Reported by

Adrien Martin

According to a press release on the poll, that figure is only slightly better when looking at the 1,000 respondents of all ages surveyed by Harris Interactive, which showed that only 14% of U.S. adults say a 401(k) plan is one of the ways they save for retirement.

According to AICPA, the safety net of a pension plan may not be there for many American workers, as more and more companies make the switch from defined benefit plans to defined contribution plans; however, nearly half (48%) of those surveyed say they expect to get a pension when they retire.

“Despite all evidence to the contrary, pensions are still regarded as a safety net for retirement,” said Carl George, chair of the National CPA Financial Literacy Commission, in the news release. “Americans have to understand that many of the entitlements of their predecessors are not guaranteed. It is up to them as individuals to prepare for retirement. Otherwise, they may find themselves working far longer than they had intended.”