A new report from the Congressional Research Service shows that we still have a long way to go when it comes to ensuring that American workers are covered by workplace retirement plans.
In fact, we’ve taken a few steps back.
According to the report:
The statistics in this report show that, even before the current economic crisis, retirement plan coverage and participation rates have remained relatively stagnant since 1998.
The report also shows that the amounts people are saving remain low. In 2006, half of all people putting money into 401(k) and other private-sector defined contribution plans have account balances of less than $25,000. Fewer than 5% of participants contributed the maximum permissible amount, $15,000 in 2006.
Now with workers having even less money to put away for retirement, it is more imperative than ever that we find a solution to the retirement income crisis. What do you think?
For more information on trends in pension coverage, check out our Reports page.