Uniformity and universality are not hallmarks of retirement plan coverage. A new report offers a look at who in the private sector is most likely to have access to a plan and to be covered.
The Department of Labor’s Bureau of Labor Statistics (BLS) on Sept. 21, 2023 released the March 2023 National Compensation Survey: Employee Benefits in the United States. The information it provides includes retirement plan access and coverage in the private sector.
What the data shows is not entirely unexpected: generally, access to a retirement plan and participation in one is more likely for:
- white-collar employees;
- those who work full-time; and
- those with higher wages.
Access and Participation by Type of Business
In general, the BLS data shows that access for, and participation by, employees in white-collar jobs is higher than those who have blue-collar jobs.
More than 80% of those who work as managers, in the business and financial sectors, and in professional jobs had access to retirement plans, and well over 70% participated.
On the other hand, three-quarters of the people who work in the production sector and the transportation and materials moving sector had access, and just over half participated. Similarly, three-quarters of those who work in the construction, extraction, farming, fishing, and forestry sector had access to a plan, and around half participated.
The situation is much more serious for employees in sales occupations. Not even half—just 43%—had access to a retirement plan at all, and only 25% participated.
| Employer Sector | Access to Retirement Plan | Employee Participation | Take-up Rate |
|---|---|---|---|
| Management, Business and Financial | 88% | 78% | 89% |
| Professional and Related Occupations | 86% | 72% | 83% |
| Sales | 72% | 43% | 59% |
| Office and Administrative Support | 74% | 58% | 79% |
| Installation, Maintenance and Repairs | 74% | 57% | 77% |
| Production | 75% | 55% | 73% |
| Transportation and Material Moving | 75% | 53% | 71% |
| Construction, Extraction, Farming, Fishing and Forestry | 67% | 51% | 77% |
| Service | 43% | 25% | 59% |
Full-time vs. Part-time
The BLS says that full-time employees were almost twice as likely as part-time employees to have access to a retirement plan, and almost three times as likely to participate in one.
| Full-time/Part-time | Access to Retirement Plan | Employee Participation | Take-up Rate |
|---|---|---|---|
| Full-time | 79% | 63% | 79% |
| Part-time | 44% | 22% | 51% |
By Pay Level
The starkest difference in access and participation was between the highest and lowest pay tiers. Ninety percent of the top 25% of earners had access to a plan, and they were more than three times as likely to participate. The gap was even bigger for the top 10% and the lowest 10%: those in the highest 10% of earners were 2.5 times more likely to have access to a plan, and they were more than 4.5 times as likely to participate.
| Pay Level | Access to Plan | Employee Participation | Take-up Rate |
|---|---|---|---|
| Lowest 10% | 37% | 18% | 47% |
| Lowest 25% | 48% | 25% | 52% |
| Highest 25% | 90% | 81% | 90% |
| Highest 10% | 92% | 84% | 91% |
