Slideshow What factors impact retirement savings?

Published
  • July 22 2015, 2:28am EDT
7 Images Total

Overview

The size of an organization, the age of an employee and a worker’s salary influence whether or not an employer offers retirement benefits as well as determines if an employee participates and how much they contribute, according to the ADP Research Institute's retirement savings trends study.

ADP used aggregated, anonymous payroll transactional data from 2014. The dataset included approximately 10 million employees between the ages of 20 and 69 with total annual compensation of $20,000 and up from about 161,000 organizations.

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Nearly all large employers offer retirement

The size of employers who offer retirement benefits:

• 1-19 employees: 33%

• 20-49 employees: 60.3%

• 50-499 employees: 85.3%

• 500-999 employees: 93.3%

• 1,000-4,999 employees: 96%

• 5,000+ employees: 98.4%

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Larger employer = more participation

The percentage of employees who are savings for retirement:

• 1-19 employees: 30.7%

• 20-49 employees: 45.2%

• 50-499 employees: 58.9%

• 500-999 employees: 62.8%

• 1,000-4,999 employees: 66.1%

• 5,000+ employees: 63.2%

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Participation increases with age

The percentage of employees who are saving:

• Ages 20-24: 41.1%

• Ages 25-34: 53.9%

• Ages 35-44: 60.6%

• Ages 45-54: 63.9%

• 55+: 65.6%

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Older employees save more

The percentage of savings for participants:

• Ages 20-24: 4.6%

• Ages 25-34: 5.4%

• Ages 35-44: 6%

• Ages 45-54: 6.9%

• 55+: 8.5%

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Higher income equates to greater participation

The percentage of employees who are saving:

• $20K-$35K: 36%

• $35K-$50K: 55.7%

• $50K-$75K: 66.6%

• $75K-$100K: 74.8%

• $100K-$200K: 81.7%

• $200K+: 85.4%

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Larger income results in larger savings

The amount employees are saving:

• $20K-$35K: 4.4%

• $35K-$50K: 5.1%

• $50K-$75K: 6.2%

• $75K-$100K: 7.4%

• $100K-$200K: 8.1%

• $200K+: 6.1%

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