Most workers who are likely to be able to save and to focus primarily on saving for retirement have access to an employer-provided retirement plan, according to a new report.
In “Who Gets Retirement Plans and Why, 2013,” the Investment Company Institute (ICI) uses the most recent data on pension coverage to update its analysis of the employee characteristics that make some employers more likely to offer, and some workers more likely to seek, compensation packages that include retirement benefits.
The study finds a clear link between the savings goals of employees and the likelihood that they work for an employer that sponsors a retirement plan.
When asked the primary reason why they save, younger and lower-income households typically said that they save to fund education, purchase a house, fund other purchases, or have emergency cash on hand, and are less likely to cite retirement as the primary reason. In contrast, older and higher-earning households 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.
Among all private-sector wage and salary workers aged 21 to 64, 53 percent work for an employer that sponsors a retirement plan. Among full-time, full-year workers aged 30 to 64, 62 percent work for an employer that sponsors a retirement plan.