Which industries best prepare their workers for retirement? The answer, perhaps ironically, is not financial services. In fact, the finance and insurance industry came in seventh in a ranking by Judy Diamond and Associates.
“By looking at historical trends in plan performance, we saw that there were clear differences in how different industries are preparing their workers for retirement,” said Eric Ryles, managing director of Judy Diamond Associates.
Each of the 20 major industry classifications described by the North American Industrial Classification System was ranked on changes to their average account balances, participation rates, employee and employer contributions, their rates of return and the number of plan red flags over a five-year period.
The industries were ranked across each metric based on the ratio of plans that saw improvements in performance compared to the number of plans that saw declines. The individual rankings for each metric were then combined into a single, overall score for each industry and the industries were ranked accordingly.
In descending order, here is the first half of the top 10 list and the number of plans analyzed in each to compile this research:
10. Wholesale Trade – 28,549 plans
9. Educational Services – 4,412
8. Public Administration – 301
7. Finance and Insurance – 35,062