AARP: Nearly Half of American Workers Don’t Have Access to Workplace Retirement Plans
A study by the US seniors advocacy organization AARP found that nearly 57 million people – 48% of US private sector employees aged 18 to 64 – work for an employer that does not offer a traditional pension. nor a retirement savings plan, as many financial analysts and professionals warn of an impending “pension crisis”.
The study, published this month by the organization, is part of a hypothesis describing pension schemes as pivotal factors in building economic security.
“Having access to a workplace retirement plan is critical to building financial security later in life,” said Debra Whitman, AARP’s executive vice president and director of public policy. “And we know that people are much more likely to save for retirement if they can do it automatically through their paycheck. We salute the many states – with the support of AARP – that have already created programs that provide workers with access to retirement savings options and offer small businesses an effective way to attract and retain employees.
Small companies were less likely to offer pension plans than their larger counterparts, the research found. However, mid-sized companies were also not guaranteed to have such plans.
“About 78% of workers at companies with fewer than 10 employees and 65% who work at companies with 10 to 24 employees do not have access to a plan,” AARP said based on the study. “Even among employers with more than 1,000 workers, one-third of employees do not have access to an employer-sponsored pension plan.
According to the study, there was also significant variation in the pension status of workers based on their highest level of education.
“Slightly more than three-quarters of workers without a high school diploma (76%) have no employer-provided pension plan — compared to half (50%) of workers with a college education and nearly a third (32%) with a bachelor’s degree or higher,” the research says.
Variations also exist by race and ethnicity, with nearly 64% of Hispanic workers, 53% of Black workers, and 45% of Asian American workers lacking access to a government-provided retirement plan. ’employer. These cohorts together represent approximately 46% of the 57 million workers not covered by these schemes.
Read the study at AARP.