Workers restructure retirement expectations

Despite decreased employer matches to 401(k)s, workers remain committed to saving for retirement, according to the survey. Ninety-one percent of workers surveyed say they value an employer-sponsored retirement plan, and the plan participation rate remains high at 78 percent. In the last 12 months, only 6 percent report having taken out a loan and only 3 percent indicate they had taken a hardship withdrawal from their accounts.

When workers were asked what they expect to be their primary source of income to cover living expenses when they retire, those who are offered an employer-sponsored 401(k) or similar plan most frequently cited 401(k), 403(b) accounts and IRAs (51 percent). Those workers who are not offered a 401(k) or similar plan most frequently expect to rely on Social Security (32 percent).

Workers who are offered a retirement plan are also more likely to save for retirement outside of work (68 percent) compared to those who are not offered a plan (50 percent). Among survey respondents who are currently not offered a retirement plan, 59 percent say they would be likely to leave their current employer for a nearly identical job with a similar employer, if that new employer offered a retirement plan.

“Employer-sponsored retirement plans, including 401(k) and similar plans, have proven to be highly effective in encouraging workers to save for retirement on a consistent basis,” said Catherine Collinson, president of The Center. “As recent financial markets have shown, retirement savings – like most savings and investment programs – have risks. However, when the markets improve, people who have continued to save should eventually enjoy a recovery in their account values.”