More than one-third (35%) of not-for-profit employees have access to a defined benefit (DB) pension, compared to 16% percent of for-profit workers, according to LIMRA Secure Retirement Institute (LIMRA SRI) data.
Findings from the LIMRA SRI Not-for-Profit Sector Employees 2016 Consumer Survey Update show nearly 40% of not-for-profit employees report not being knowledgeable about investments or financial products—the same percentage that is not confident that their money will last through retirement.
The data reveals defined contribution (DC) plans are the most widely available retirement planning benefit even among non-profit employers. In the education sector, 86% of employees participate in a DC plan, while 36% have access to a DB plan. Among governmental employers, DC plan participation is at 88%, and access to DB plans is 38%. DC plan participation is a little lower for non-governmental and non-education not-for-profits, at 82%, while access to DB pensions is significantly lower, at 23%.
Tied into all of this, the LIMRA SRI research finds 62% of non-profit employees anticipate Social Security will comprise a significant portion of their retirement income. More than one-quarter (27%) suggest they will work full-time beyond the traditional retirement age, while 25% plan to work part-time.
The LIMRA SRI survey shows, overall, 58% of non-profit sector employees are confident about their retirement finances. Just 12% feel very knowledgeable about finances generally, while 49% feel “somewhat knowledgeable” in this area. The remainder are split between “not at all” and “not very” knowledgeable.
Additional survey findings are reported here.