September 27, 2012
--- Most
workers who are likely to focus on retirement savings have access to an
employer-provided retirement plan, according to the Investment Company
Institute. ---
In 2011, nearly three-quarters of workers most likely to be
focused on saving for retirement had access to a retirement plan—including
defined benefit (DB) and defined contribution (DC) plans—through their own
employer or their spouse’s employer, and 93% of those with access
participated.
“Who Gets Retirement Plans and Why, 2011,” a study by the
Investment Company Institute, finds a link between the savings goals of
employees and the likelihood that they work for an employer who sponsors a
retirement plan. When asked the primary reason they save, younger and
lower-income households are typically focused on saving to fund education, to
purchase a house, to fund other purchases, or to have emergency cash on hand.
They are less likely to cite retirement as the primary reason they
save.
In
contrast, older and higher-earning workers are more likely to save primarily
for retirement. Consistent with these savings preferences, groups of workers
who are more focused on saving for retirement are also much more likely to work
for an employer that offers a plan.