Less than half of U.S. workers have access to retirement plans through their jobs, putting millions at risk of inadequate retirement savings, new study finds Ta.
About 56 percent of the U.S. workforce, or about 69 million people, do not have access to employer-sponsored plans, according to the report. the study Award from the Economic Innovation Group (EIG).
The percentage is lowest in Florida, where only 33% of people have access to a plan at work.
Second worst is Georgia, where only 37% of people have access to a retirement plan, followed by Rhode Island, where only 39% can.
Employer-sponsored 401(K) plans offer employees a way to automatically save for retirement while benefiting from tax breaks and matching contributions from the company.
Through an analysis of Census data, the study found that Americans’ retirement readiness is also highly dependent on income, with high-income households much more likely to save for retirement than low-wage households. It has been found.
According to the EIG, only 30 percent of the low-income workforce (workers earning less than $37,000) have access to 401(K) or other employer-provided retirement plans.
Florida, California and Connecticut are the worst performers, with less than a quarter of low-income workers having plans available.
This is especially acute in California, where 3.6 million low-income workers have the highest number of low-income workers in the nation without access to employer-provided retirement plans.
The study found that low-wage Americans were less likely to participate in savings than higher-income workers, even if they had access to the system.
The study also found clear geographic gaps in workplace planning. He has the highest regional access to employer-provided 401(K) plans, etc. in the Midwest at 49%.
New Survey Finds Less Than Half of American Workers Qualify for Retirement Plans Through Their Jobs, and Millions Have Inadequate Retirement Savings
This is 7 points higher than the South, which is accessible to only 42% of people.
“Without the ability to involve workers in the production of real nest eggs, these states will prove to have higher rates of elderly poverty in the long run,” said EIG Associate Economist Benjamin Glasner. said. CBS.
But on the other hand, Iowa is the best state to offer employer-sponsored retirement plans, with 58% of people having access to retirement plans. despite this. Only 50% of residents are subscribed.
On the other hand, about 57 percent of Idaho residents have access to a retirement plan at work, 46 percent have accepted the offer, and 55 percent of Montana residents have it, of which 45 percent have a plan. have joined the
The announcement comes after a groundbreaking report released earlier this month that wealthy households save almost 10 times more for retirement than middle-income households.
Wealthier households save about 10 times more for retirement than middle-income families, according to figures from the General Accounting Office
This gap has widened sharply over the past two decades, according to an analysis by the Government Accountability Office.
High-income households have about $605,000 in savings for later life, compared to $64,300 for middle-income households.
In 2007, these amounts were $330,000 and $86,800 respectively.
Moreover, only 1 in 10 low-income households have any money saved for retirement, compared with 1 in 5 in 2007.