Tuesday, December 17, 2013

Employment-Based Retirement Plans: 2012 Update

If Americans need to save more for retirement, then we have a problem. Most of the nation's private-sector workers are shut out of employer-sponsored retirement plans. No wonder participation in these plans is so low.

Among the nation's 110 million private-sector wage and salary workers aged 21 to 64, only 39 percent participated in an employment-based retirement plan in 2012. Behind the low participation rate is the fact that many employers do not offer a retirement plan. Only 48 percent of private-sector workers had  an employer who sponsored a retirement plan, the lowest figure in the past 25 years and down from a high of 59 percent in 2000.

Source: Employee Benefit Research Institute, Employment-Based Retirement Plan Participation: Geographic Differences and Trends, 2012

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