Employer-provided retirement plans like 401(k)s are how moderate income American workers save for retirement. A look at participation rates among these workers (defined as those earning between $30,000 and $50,000 a year) shows that among workers who have access to a retirement plan at work, 71.5% participate. Among those who don’t have access to a plan at work, however, only 4.6% save through IRAs.
And according to research conducted by the Employee Benefit Research Institute, among families that have retirement savings accounts, those accounts represent an average of nearly two-thirds of their total financial assets.
This information comes from an “infographic” (see below) produced by the American Society for Pension Professionals and Actuaries. Along with a wide range of other content — including videos, articles, and even an online video game — a series of ASPPA infographics like this one will be featured on SaveMy401k.com, a new website set to launch in mid-November. The launch of the website will kick off a concerted effort by ASPPA and NAPA to protect the tax-deferred status of 401(k) plans as the debate over tax reform heats up on Capitol Hill. Stay tuned!
Click here for a pdf of this infographic.
