Almost half of private sector employees ages 18 to 64 --57 million Americans -- do not have the option to save for retirement at work. Evidence shows that payroll deduction is the key to helping households build retirement savings and establish retirement security. Greater access to workplace retirement savings programs could also improve economic mobility and reduce wealth disparity.
- Employees at small businesses are less likely to have a retirement plan. About 78 percent of those who work in firms with fewer than 10 employees and about 65 percent who work in companies with 10 to 24 employees lack a plan.
- Almost three out of four workers with less than a high school degree (76 percent) do not have an employer-provided retirement plan—a much higher percentage than those with some college (50 percent) or a bachelor’s degree or higher (32 percent).
- 46 million workers with annual earnings of $50,000 or less – 81 percent of the 57 million – do not have access to an employer-provided retirement plan.
- Access to a plan differs substantially by race, ethnicity, and gender. About 64 percent of Hispanic workers, 53 percent of Black workers, and 45 percent of Asian American workers lack access to an employer-provided retirement plan. In addition, 46 percent of men and 49 percent of women do not have access to an employer-provided plan.
John, David, Gary Koenig, and Marissa Malta. Payroll Deduction Retirement Programs Build Economic Security. Washington, DC: AARP Public Policy Institute, July 11, 2022. https://doi.org/10.26419/ppi.00164.001