66% of people between age 21 and 32 have $0 saved in Employer-sponsored retirement plans

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by hokutenkishidan

The report is based on an analysis of the 2014 Survey of Income and Program Participation (SIPP) data from the U.S. Census Bureau. It examines the distinct challenges posed by the current retirement system in America for working Millennials between the ages of 21 and 32.

www.nirsonline.org/2018/02/new-research-finds-95-percent-of-millennials-not-saving-adequately-for-retirement/

This only looks at retirement accounts through employer sponsored plan. It does not take into consideration other retirement accounts such as Traditional or Roth IRAs

Access

  • 66.2% of Millenials work for an employer that offers an employer-sponsored retirement plan
  • Only 55% of these Millenials are actually eligible to participate in an employer-sponsored retirement plan
  • Of those who are eligible to participate, the participation rate is at 94.2% which about the same participation rate as older generations.
  • Overall, 34.3% of Millenials participate in an employer-sponsored retirement plan
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Participation

  • 66.1% of working Millenials have $0 saved for retirement
  • For the Millenials that have retirement account, the average balance is $67,891 and the median balance of $19,100
  • Taking into account an employer match, 14.2% of Millenials contribute 15% of more of their income into their employer-sponsored retirement plan
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Barriers

  • 25.1% of Millenials are employed part-time
  • Over half of Millennials have only been employed with their current employer for between one and two years (26.5%) or under one year (23.6%)
  • The top three reasons for not participating are: Not enough hours (24.2%), Haven’t worked long enough (16.0%) and Can’t afford to contribute (9.3%)
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