Only 50% of US Workers Participate in a Retirement Saving Plan

[bjl584]

http://www.marketwatch.com/story/why-50-of-workers-are-retirement-have-nots-2013-07-23

"Retirement crisis? More like a catastrophe for the 50% of U.S. workers who don’t participate in a savings plan at work, many of whom work at small companies nationwide. Those businesses face steep hurdles in providing retirement plans to their workers, according to a new report—and without such plans, it’s even more challenging to save enough to retire."

[bUU]

Much of my second-hand insight into those facing financial crisis after they cannot work anymore comes from my sister, but I was surprised over the past few months to learn that even account executives and others in my company, who make a decent salary, don't see their way to contribute significantly to their retirements, even with FRA less than 15 years away. I was shocked to learn that, within my division (about 30 employees who are US citizens or permanent residents), one co-worker and I have over 15% of the total value of the company's 401k plan between the two of us - the rest of our co-workers are contributing so little. It's remarkable.

[disneysteve]

I'm in that 50% that has no employer-sponsored plan but I do still save for retirement. I fully fund a Roth for me and for my wife and we invest in taxable accounts which isn't as good but it's a lot better than nothing.

[kork13]

I'm in that 50% that has no employer-sponsored plan but I do still save for retirement. I fully fund a Roth for me and for my wife and we invest in taxable accounts which isn't as good but it's a lot better than nothing.

Yeah, when you add in the fact that many of those people without work-sponsored plans at least have IRAs, it's not quite so "critical". With that said, the other problem isn't simply participation, but even more, contribution. There are alot of people with retirement accounts who contribute very little of their paycheck (if any at all, though still technically "participating"). Without adequate contributions, many of those people will find themselves in a hard spot come retirement age.

[Petunia 100]

I'm in that 50% that has no employer-sponsored plan but I do still save for retirement. I fully fund a Roth for me and for my wife and we invest in taxable accounts which isn't as good but it's a lot better than nothing.

Have you ever considered a Simple IRA? If so, did you decide against it for some reason?