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Benefits October 6, 2005
Survey: Participation at 45% for K or 403(b) Plans
October 6, 2005 (PLANSPONSOR.com) - A new Wall
Street Journal Online/Harris Interactive poll found that just
under half (45%) of workers are participants in a K plan or
403(b) program.
Reported by Fred Schneyer
A news release about the survey also found that 14% have rejected employer offers to join a workplace plan and another 35% are at companies without retirement savings benefits.
Meanwhile, just over a third of US workers surveyed (34%) said they should have enough resources to live comfortably when they stop full-time work, while another quarter (27%) anticipate falling short of the necessary savings goal. About four in 10 weren’t sure either way.
According to the announcement, there appears to be a direct correlation between income level and the likelihood to participate in a 401(k)/403(b) plan. Less than one-quarter (22%) of workers with annual household incomes of $35,000 or less are K plan participants or are in a 403(b) compared to 40% of workers with incomes of $35,000 to $49,999, 54% of workers making $50,000 to $74,999, and 66% of workers pulling in $75,000 or more.
Not only that, but men aged 45 to 54 are most likely to participate in retirement plans (59%) while female workers aged 18 to 34 are most likely to say they do not participate because these plans have not been made available to them by their employer (45%).
Regarding investment offerings that are asset allocated according to a certain date when participants retire, approximately two in five (41%) workers say they would be very or somewhat likely to participate in an age-dated mutual fund if it was made available, and about half (51%) would be very or somewhat likely to participate in a Roth 401(k) or a Roth 403(b) if it was offered to them or their spouse or partner.
Workers aged 18 to 34 are most likely to say they would be very or somewhat likely to participate in an age-dated mutual fund (47%), while those aged 45 to 54 are most likely to be interested in a Roth 401(k)/403(b) (60%).
Harris Interactive conducted the online survey within the United States between September 14 and 16, 2005 among a national cross section of 2,025 adults age 18 years and over.
More information about the survey is here .