Among the roughly 4 percent of covered Americans who have so-called “consumer-driven” health plans, contributions to the plans by their employers are shifting: Workers with employee-only coverage have seen their annual employer contributions decrease, while those with family coverage have seen their annual employer contributions increase, according to a new survey released by EBRI. <A href="http://www.ebri.org/pdf/PR.856_03Nov09.CDHP.pdf">Press release </A>
Availability, Contributions, Account Balances, and Rollovers in Account-Based Health Plans, 2006–2009
ENROLLMENT IN CONSUMER-DRIVEN HEALTH PLANS: The share of the adult population with private health insurance enrolled in account-based health plans (so-called "consumer-driven" health plans, or CDHPs) remains small but continues to grow. In 2009, 4 percent of the adult population with private health insurance was enrolled in an health reimbursement arrangement (HRA) or had a high-deductible plan with an health savings account (HSA), up 1 percentage point from the previous year. An additional 4.9 percent were eligible for an HSA but did not have such an account. Overall, 8.9 percent of adults with private insurance were either in a CDHP or were in a high-deductible plan that was eligible for an HSA, but had not opened an account.
CDHP ELIGIBILITY: Among individuals with traditional employment-based health benefits and a choice of health plan, 39 percent were eligible for a CDHP in 2009, up from 33 percent in 2006.
CONTRIBUTIONS: Workers with employee-only coverage have seen their annual employer contributions decrease, while those with family coverage have seen their annual employer contributions increase, such that nearly three-quarters of workers with family coverage receive a contribution of $1,000 or more. Both the amount of money that individuals have accumulated in their accounts and the amounts rolled over from year-to-year have grown: Those reporting a rollover of $1,500 or more increased from 13 percent in 2006 to 31 percent in 2009.
Retirement Plan Participation and Asset Allocation, 2007
PARTICIPATION RATES AND PLAN TYPE: The percentage of family heads who participated in an employment-based pension or retirement plan remained basically unchanged from 1992–2001 (at almost 49 percent) before declining nearly 2 percentage points by 2007 to 46.9 percent. Over that period, participation in a defined contribution (401(k)-type) plan grew sharply. In 2007, 18 percent of family heads who participated in an employment-based retirement plan had a defined benefit plan only, almost 64 percent had a defined contribution plan only, and the remaining 18.5 percent had both a defined benefit and defined contribution plan.
IMPORTANCE OF ASSET ALLOCATION: The allocation of retirement assets is affected by demographic factors (income, education) and by ownership of other types of retirement plans: Those who own 401(k)-type plans and IRAs are more likely to be invested all in stocks if they also own the other type of plan. Ownership of a defined benefit plan also is correlated with an increased probability of a 401(k)-type participant being invested all in stocks.
6 Employer Among IRA cent h Conc the acco “Retirement Plan Participation and Asset Allocation, increas See Brian K. ad mor lusio ed unts bet pa .e w Bucks, Arthur B. Kennickell, a n Employer rticipants, t than een 2 75Si 00ze perce 6 con a ? h nIn 2007, e d 2 trace of n ributions t in 008 stocks in , the but family h fel fa in l n 20 fmily hea d Kevin B. Moore, “Changes otheir I e r pers 09, ads among ” who R ons EBRI Notes d A. O di wit worked for the l d the lo fno h em those who t have , no. 1 (Employee Benefit Research Inst wer ployee a si -inco ha -o in U.S. Family Finances from 2 gnificant arg m nly covera d 2 e gro est employers wer 5 perc up, effect ent o the ge, perc but i on the r less inv ncreas enta pro e mo ge ested in stocks i b eabi re d co itute, January 004 to 2007: Evidence likely for p ntributi lity of e t rs be oons ng have ing $ w n 1 th 2004): ,i a 500 th eir or Retirement Plan Participation and Asset Allocation, 2007 Availability, Contributions, Account Balances, and Rollovers Figure 1 Figure 1 Figure 14 Figure 12 Figure 10 Figure 2 Figure 6 Figure 4 Figure 8 defi family cover invested all 401(k)-type more f 1 fro -11, for results from the 199 m ne the Surve d ell ben from in efi age. ply 27 an, 32 t pla stocks, but w of percent Co n (eith nsumer percent er toh alone or 21 2–2001 Survey Finances, had all ite, non percent. w thei -Hispa ” ith Federal Reserve Bulletin r I a de Among th s of Consumer nic f RA assets inve fin amily h ed cont e he ig a ribu her d Financ ss ha ted in - tion incom , Vol. 95 d a es on as plan int low e group, th eres ) ethan those wh (February 2009 r likeli set allocation fr t-earni he ood of ng perc assets entage contr o worked bein ): A1–A55, om 401(k)-typ and 40. g invested all for s 1 pe for more detail about the ibuting $ m e plans an rcent with aller in 1 inter employ ,50 d IR 0 est- 25 or more As. ers. per- The per Percen centatge of age o fami f Wo ly he rkin ads w g Family ho partic Head ipate s Wh d ino an se Emp employment loyers Sp -baso ed no pension sor a R o et r retirem iremene tnt Plan plan rema and th ine e Head d s' a a By Craig Copeland, EBRI in Account-Based Health Plans, 2006–2009 Amount Rolled Over from Past Year, Among Persons With Employee- Percentage of Individuals With Employer Contribution Annual Individual Contributions to the Account, Annual Individual Contributions to the Account, Annual Individual Contributions to the Account, Annual Employer Contributions to the Account, Amount Currently in Account, Among Persons With CDHP, 2006–2009 Percentage of Individuals With Traditional Employment-Based Survey For example, earnin increased fro cent or g assets o less in f Consumer Finances. m 42.0 percent stocks. . How 47 percent ever, o w to 54 percent. fhite, no participants n-Hispanic who worked for family head an 401 employ (k)-type plan er with 5 partici 00 or pmore em ants werploye e sign eificantly s had a less li definekely to d Participation, by Employer Size and Industry, 1992, 1995, 2001, 2004, and 2007 basically unchanged from 1992–2001 (at 48.7 percent) before declining nearly 2 percentage points by 2007 to a a a a a 16 to Account, Among Persons With Employment-Based b c Only or Family CDHP Among Persons With Employee-Only or Family CDHP Among Persons With Employee-Only or Family CDHP Among Persons With Family CDHP, Among Persons With Family CDHP, and No Health Problems, 2006–2009 2006–2009 2006–2009 By Paul Fronstin, EBRI As shown i VanDerhei, Holden, and Alonso (2009), op. cit n prior and forthcoming work, the percentage ., found that the percentag of persons with e of 401(k) a CDHP wo participants invested in equities rking for a large employer 80% Health Benefits Offered HDHP or CDHP, 2006–2009 benefit be invested all plan, co in mpared with interest-earning assets t 8.3 percent oh f partic an nonwh ipants ite working for participants. anThe employ IRA er partic with ipants’ rising l 10 -19 employees. Conse evel of net woqrth was uently, 46.9 percent. Over that period, a 1992 dramatic shift occurred in 1995 Figure 5 the types o a f plans i 2001 n which these 20 fami 04 ly heads partici 2007 pated, 80% 80% 8 Novem 7 ber 20 80% 09 • Vol. 30, No. 11 80% and Household Income $50,000 or More, 2006–2009 Health Benefits and CDHP, and Health Problem, 2006–2009 2006–2009 decreased as t Health Dif continues to If th From Current Population Sur e family h fere in h n ecrease, ey became ol ces— ad had more Persons which may der after the in both v than ey (CPS) da wit 75 partly h perc an e ta, the percentage of all workers ent of the assets d witho x itial jump from those in their 20s to thos plain th ue h t he igher em alth pro in hb ployer is or h lems ar e contributio r e abo 401 particip (k)-type ut e ating in an employme n q e in their 30s. However, the percentage l ua evels. ll pl y likely to an an Hi ^# d th gher cont e I deducti Rribute A assets inclu nt-based retirement b to a les m n H ay in ded SA, workers for associated wit smaller h an incr employ eased pro ers who babi part lity of icipated i being i nn avested a plan hall d in stocks, a higher likeli while hood of for 401 having only (k)-type partici a defi pants an ned contr incr ibution ease in Introduction 80% Head Head Head 73% Head Head as those with 80% a defined cont Joint and Conditional Distributions of IRA Stock Allocations ribution (401(k)-type) plan grew by more than 40 percent. ^ 80% 7 70% 70% part e plan was 41.9 with the highes and t rollover assets, the hxeir plain cont hipercent in 200 ribution gher t allocati in investme dividua lev on of equities els 4 before declining to 39.7 percent lare a n contri t in the bout t butions was fairly consistent among those in thei IRA he was more .same. While rol T likel hlose over amounts y to have with in 2006, ris healt a h an hi pr gher d accou ing to 41.5 percent oblems contr stock allo r 30s throu nt bala ication bute g nces have h their 50s, with a drop-off for slight in 2007, a (73.8 incr ly percent more than ned declining to 40.5 ased, t of t h tho h ey ar ose w se e not ith a 70% Employer partici- Employer partici- Employer partici- Employer partici- Employer partici- plan the l than evel o thos f the part e who icipa worked for nt’s net worth larger em was consistent w ployers. ith a lower likelihood of being invested all in interest-earning 70% 70% by Family Head IRA Owners Who Are Also 401(k)-Type Plan Participants, 2007 A key factor fo 70% r retirees who hope to achieve an adequate level of income security throughout retirement is the 2006 2007 2008 2009 2006 2007 2008 2009 70% large. participants in their 20s and 6 percent in 200 without a rollover Sl hea ight halth d ly less than 8. These CPS l pro more than blems. one 50 Co evels are expe - 0s. percent in ntributio half of the n l sto co eve cted to be lowe vered po cks, compared with 2006 ls increase pulati d 2007 si r than on has gnificantly 65 the res at .9 per 2008 leas for ultcent of those t $1, s for just family heads in this both 00 2009 grou 0 inps betwee an account, with no rollover). n 20 an 06 d slightly l and study, as the C For 2007 fam ess th and ily hea an were PS d s 70% Introduction Due to the increased participsation ponsors in depat fines ed co sntributio ponsors n pl pat ans, the es spons manner ors in pat whi esch part spons icipa orsnts pat allocate t es sh pons eir ors assets pates assets. The o 70% ther extreme allocation 67% for the IRA and 401(k)-type participants did not have a clear result as net worth ownership of an employment-based retirement plan or funds that were accumulated in an employment-based 65% ^ All IRA Stock Allocation 60% 60% 2006 2007 2008 2009 The percentage of working family hea 63% ds who part2006 icipated 2007 in a defin 2006 2008ed benefit retirement plan 2007 2009 2008 2009 decreased across all 2006 2007 2008 2009 results include younger workers and spouses then uncha one-h with low alf has inves nged in 20 less than tment in08. stocks (2 $1,0C00 ontributio in a a 5 n perce acco n ln eu t vels nor less) wi t (9 th incr 2006 a lower li perc ein t ased again ent h 2007 ei did not k kelih r 401(k ood of a stron in 2008 20 )n -ty ow 09. pe how mu Amon plan, 2009 g attach a rollov g ch perso wa me s in th ens witho r also le nt to the work force. See Copeland e acco d to ut u hea a nt). high lth S pe r imilarly r lik obleeliho ms, , 41 28 od of per- per- 60% 60% 62% (percentage) within these plans could have a significant effect upon the assets they ultimately will have available in retirement. 60% increased. 401(k)-Type Plan Interest 1%– 26%– 51%– 76%– Employers have been interested in bringing aspects of consumerism into health plans for many years. As far back as 17 retirement plan. Various data sources are available for measuring the percentage of workers # with these types of plans, 60% These numbers are determined by adding up the percentage in each category (51%–75%, 76%–99%, and 100%) with a 60% 53% ^# employer size 60%s. Furthermore, the percentage in a defined contribution plan reached its highest levels. This continues a 52% Availability, Contributions, Account Balances, and Rollovers A(November 2009), op. cit ce cent roll bein ll nt contr g i nvested more i edi ov bute er at d $1,5 least 0 n0 stock ., $1, or more i for further result 000, s61. in th an 3% n e d 20 IRA 50 06, 48. p th e 3% s from CPS. whil rcent an those with e rolle 41 60. p 7% ercent d ovout a rol er less tha 47. contri 9% b lover uted n 61. $1,0 9% $1, (44. 00. 50 5 perc 0 o 48. 7% r more ent, ^ compared 61. in 0% 2007 an wit 46. d h1% 20 36.9 08, perc a60. nd 4 5% ent 4 per- 46.9% 50% Stock Allocation Earning 25% 50% 75% 54% ^# 99% 100% However, even with increased experience and use of these types of plans, the need for more 51% financial education of 1978, they adopted Sec. 125 cafeteria plans and flexible spending accounts. More 50% recently, employers have been 50% 47% so that retirees’ potential income from these assets can be predicted. In particular, the EBRI-ERF Retirement Security ^ # 17 b more than 50 50%percent allocation to stocks in the IRA. For example, for those with a rollover, 2.8 percent (51% ^ –75%) plus trend that 50% has been ongoing since 1992, but which appeared to accelerate from 2004–2007, a 51% fter changes to the Employer Size 50% # 44% ce having more nt contr As ibute s than et Alloc d $1,5 50 a 0 perc tion C 0 or en more t in stocks in omp in 20 arison Among 09 (Figu their I re 9). RA). Plan Typ Similar e ly, 51 s ?As shown percent of tho Joint Distribution previously, the se with a pro health pro bability of blem bei contributed ng invested 40% 48% 43% participants still appears to exist, as the distribution of participants invested in each proportion of stocks was found not 50% ^ 39% 39% in Account-Based Health Plans, 2006–2009, p. 2 47% increasingly turning their attention to consumer engagement in health care. In 2001^, they introduced account-based 8 50% 50% Projection Mo del (RSPM) allows for 37% estimation of the additional savings that current workers would need ?beyond 46% Few40% er than 10 employees 11.9 9.0 10.7 7.9 13.7 ^# 10.7 46%13.7 ^ 11.0 11.2 8.4 Finally, 11.1 percent (76%–99%) plus A decline was as mor found in the r e healthy indiv esults from CPS fo 30.6 perc iduals enroll ent (100%) equals 44.5 percent. in CDHPs, r 2004 to 2 drivin 007 (Copeland, November 200 g up the average health stat 9), op. cit us of the C . However, an increase in DHP population, questions about pension plans in the 2004 Survey of Consumer Finances resulte (Percentage) d in a higher percentage of family 34% 34% $1 in various ,500 or mor levee ls of stocks w in 2009, and as similar for 46 percent cont IRA an ribute d 4d 01 $1, (k)-t 500 ype pla or more n par inticipants. 2007 and Ho 2008, wever, up among IRA from 33 percent partici in 2006 pants 33% to vary sign 40% ificantly with age until the participant reached age 65. Furthermore, higher educational attainment, income, health plans—a combination of health plans with deductibles of at least $1,000 for employee-only 32 coverage an % d tax- 10–19 42.2 29.9 28.0 22.3 38.5 30.2 36.3 25.4 32.0 18.1 savings that 40% would be generated assuming existing saving behavior within tax-qualified plans ?in order to maintain the 40% 11 40% ^# participation w account balan Asset ces and rollov a Allo s found from cation by Defin e the National Compensation Su r amounts ed wi Bene ll incr fit S ease. tatus and A This rvey conducted does not ccount explai by the Burea Balance n why rol 36% ?Family lu o of Labor Statis ver amounts heads whave i htics. See o partic ncrease ipated for in both heads partici All Interest Earning pating in a defined benefit plan.3.6% 28% 0.3% 28% 28% 3.1% 37% 1.0% 0.8% 4.4% 40% ( there se Figure 10 ems t ). o be a significant difference in the likelihood of being invested all in stocks or all in interest-ear 27% ning assets EB 30% RI Employee 40% Benefit Research Institute Notes (ISSN 1085 -4452) is published monthly by the Employee Benefit Research and 20–99 net worth 40% are correlated with 51.2 more inv 37.6estment in 1 54.7 stocks. 41.0 Historical 55.3ly, stocks have pro 42.7 57.d 5uc^ed signif 40.9 icantly 57. higher 3 41.5 18 preferred savings or spending accounts that workers and their families can use to pay their out 33% -of-pocket health care th same standar These numbe d of rs are determin living throughout ed by adding retirement. up the percen tage in each cate 34% gory (51%–75%, 76%–99%, and 100%) with a 1%–25% 2.7 1.3 1.2 0.3 0.2 # 0.8 www.b indivi a 401(k duals wit ls.gov/n )-type h c plan s/ncspubs.htm hea and a lth probl defined benefit e for results of the various ye ms, but that could also plan are more li be expl ars of the National kely to hav ained by ri e more than sing i Compensation Survey. Al ndivi dual half of thei contributions r assetso see Patrick Purcell, sas a result in the 401 of (k)-ty health pe Institute, 1100 13 St. NW, Suite 878, Washington, DC 32% 20005-4051, at $300 pe 32% r year or is included as part of a membership 100–499 30% 73.3 54.6 75.3 57.2 ^ 79.8 59. 33% 9 77.4 30% 56.4 74.4 57.5 that is related to whether they also owned a 401(k)-type plan (Figure 4). Twenty-four percent of those who did not Retirement Plan Participation and Asset Allocation, 2007, p. 13 returns tha 30% n interest-earning assets, in addition to having signific 30% antly greater volatility. 30% expenses. A 26%–50% few employers first started offerin 3.8g account-based h 1.7 ealth 7.9 plans in 200 25% 3.31, when t ^ hey 0.8 began to 3.1 offer health 30% In more than 50 subscription. Periodic dustr percent allocation to y ?Faa mily hea ls postagde rate paid in s stocks in who worke the 401(k)-type plan. d Was in hpublic ington, DC admi , and additional mailing offic nistration and participateeds i . PO n aSTMASTER retirement: Send addres plan had ths e 30% 500 or m 20% ore 30% 88.8 73.2 87.3 70.6 86.9 70.2 86. 26%7 67.3 86.0 68.8 plan “Pension Spons probl invested i ems. n orship and Part stocks than are icipation: Summary of Recent 401(k)-type participants Trends,” who are not CRS al Reports for Congress, so in a defined bene RL3012 fit plan,2 (Congressional as 54.0 percent of 30% th 25% Length of Time in Plan own a 401(k)-type plan were invested 1all in interest-earning assets, compared with 17.1 percent of those who did own 51%–75% 1.7 2.0 4.2 6.3 1.2 4.6 changes to: EBRI Notes, 1100 13 St. NW, Suite 878, Washington, DC 20005-4051. Copyright 2009 by Employee Benefit To establish existing savings behavior, it is necessary to estimate the percentage of workers with an employment-based reimbursement arrangements (HRAs). In 2004, employers started offering health plans with health savings accounts highest percentage with a defined benefit plan only, at 37.7 percent in 2007. The next-highest level (24.2 percent) was Industry 20% Research Servi those with a de ce, September 11, 2009) for further discussi fined benefit plan had more than half invest on on the diffe ed in stockrent results from the various s s, compared with 48.1 perceu nrveys. t of those without a 19 76%–99% 1.5 0.3 1.7 0.8 3.0 2.8 In additio Resean rch Institut 20% to demogra e. All rights re phic factors relate served, Vol. 30, no 16% d to family . 11 16% . heads, asset allocation within a family head’s retirement plan one. Amo While HRAs 10%2 n 20% g I anR d HSAs A participa are s nttill less t s who had roll han a deca 14% over assets, th de old and a ere relativ was a e lo ly s wer mall percent likelihood aof bein ge of th g al e heal l in th insura interest-earni nce market, ng See VanD 20% erhei, Holden, and Alonso (2009), op. cit. 15%15%15% 20% 16% 16% ^ retirement pla 20% n, an 14%d to know the characteristics of wor ^kers with and without a plan—the subject 14% of this article. (HSAs Agricu)ltu . r eBy 20 , fores08, 9 perce try, nt of employers with 10 ^ –499 workers # 16% and 16% 20 percent of employers with 500 or ^ more workers 15% ^ among those 20%working in 14% mining and construction. 18% Family heads workin 15% g in public administration 15% also had the 14% highest 100% 15%15% 15% 3.9 12% 1.3 3.8 15% # 1.8 1.6 17.2 14% 14% ^ 12% 12% 14%14% 13% 13% 16% 16% defined benefit pla 16% 13% n (Figure 6). Furthermore, 401(k)-type participants without a defined benefit plan are 11% more likely to 10% ^ 11% 12% 11% ^ # seems to be affecte 13% d by his or her ^ 15% 11% ownership of other types of ^ retir 13% ement plans. Bot 12%h those who own 401(k#)-type assets, relative to those IRA participants without 3 rollov 11% 12% er assets. 12% 11% ^ a signi and f ficant isheries change conti 11% nues to occur 12.5 in 11. the l 2 engt 12% 12.h 8 of time in 8.1 dividual 17. s had these 9 12% 12.3 accounts. B 9.7 etween 9.4 2006 an 19.d 4 2009, 11.0 9% c 11% 11% 11%10% 13% 11% 12% 9% 9% 9 10% 11% 11%11% 12% 9% ^# 9% 11% 9% offer ed either an HRA or HSA-eli ^# gible 12% 8%plan. # Employ 10% ers ^ have also taken a broader approach to con 9% sumer engagement percentage 10% with both Conditional Distribution, a de 10% fined benefit a n by 401(k)-Type Plan Stock Allocation and Rollover Status of the IRA d a defined contributio 9%9%# n plan 12% . Workers in the agriculture, forestry, and These sponsorship rates and 11% levels o 9% 9%f participation cannot be used to calculate “participation rates” (per # 8% 8% 8% centage of 0% 10% 9% ^ 12% 11% 7% 6% # 8%# # # be invested all 10% in interest-earning assets t 8% ^ h 8% an those 8% with a 10% 6% defined benefit plan. If the participant did ^ 7% not have a Mining and c 10% 10% onstruc 6% tion 40.7 6% 36.7 37.6 ^ 30.2 40.7 30.7 34.2 25.1 35.7 24.0 plans and those w 10% ho own I 9% R7% As are more 7% li 6% 9% kely to 7% be inve 7% sted all 7% in stocks if they also own the other type # 6% of plan, The March Current Population Survey (CPS), conducted by U.S. Census Bureau, has the most up-to-date information on the percentage of individuals in th 4 ese 5% plan 5% s for thr ^# ee to four years increased from 9 percent to 26 percent, an 5% d the Endnotes ^ EXEC The Em 5% ployee UTIV Benefi 4% t Research Institut E SUMMAR e (EBRI) was founded in 1978. Its Y 6% 8% 5% 5%mission is to Greater than 75% 10% 5% ^ 13.6 4.1 13.8 6.7 11.4 50.4 ^ 3% through various other HDHP initiat or CDHP i ^# ves. Offer ed 3% Not Offered a CDHP or HDHP Don't Know if 4% CDHP or HDHP 4% W 7%as Offered 2% 8% retirement plan eligible worker fisheries industry had the highest s who partic percent ipate in the plan), as the sponsor age with a defined contribution pl ship rate an only, in this at 82. 3% study includes 7 perc3% ent. 6% any worker who 3% Manufacturing 72.5 58.0 75.7 63.0 79.8 66.4 75.4 56.7 5% 69.9 58.4 1% 2 defi Among ned 401(k benefi )-type parti t plan but his cipa or her nts, those spous wit e h did, out an the IRA perce were mo ntage more re likel iny to be al vested in s l inv tocested i ks wasn hi in gher tere st-earnin than for all g ass of ethe ts and contribute to, to encourage, and to enhance the development of sound employee benefit although som 1 e of the difference related to IRAs is due to the high percentage of older IRA participants without a the percentage Rolloveof r workers with a retirement plan. 7.0 However, 8.3 the CPS do 11.0 es not pro 11.8 vide a breakdown o 11.2 f the r 50.8 etirement percentage in the plans for five years or more increased from 3 percent to 9 percent (Figure 11). See Paul Fronstin, “Can ‘Consumerism’ Slow 0% the Rate of Health Benefit Cost Increases?” EBRI Issue Brief, no. 247 Wholesale and r 0% etail trade 48.7 33.0 52.4 33.4 53.4 33.8 52.8 34.8 56.6 36.5 0% 0% 0% works for an employer that sponsors a plan Who we are regardless of his or her eligibility status. For participation rate trends from SCF, Source: EB 0% RI/Commonwealth Fund Consumeprograms and so rism in Health Care Sund public policy urvey, 2006 and 2007; EB through objective RI/MGA Consumer Eng resear ageme ch and nt in Hea educati lth Care S on. EBR urvey, 200I is the only 8 and partici less likely to pants No rollove be investe without a r defin d all ein d e benefit quities (Fi plan g.ure In 16.8 part 4). For th icular,ose witho 2.1 32.6 percent ut a 15.2 nof those witho IRA, 24.2 4.2 percent ut a de were fine 11.5 inv d bested a enefit p 50.2 ll i lan n i but nte with rest- 401(k)-type0% plan. Ownership of a defined benefit plan also is correlated with an increased probability of a 401(k)-type plan types—defined be Nothing nefit and de Less than $200 fined contributio $200–$499 n—for those partic $500–$999 ipating worker $1,000 or More s. Previous EBRI r Don't Know esearch The per Finance, centa insuran ge of retir ce,Less than $200 real ement plan $200–$499 participants across al $500–$749 l industries wh $750–$999 o had a de$1,000 or More fined benefit plan Don't Know only declined This report presents findings from the 2008 and 2009 EBRI/MGA Consumer Engagement in Health Care Survey and the 2009. Employer Contributes to Account Nothing Nothing Less than $500 Less than $500 $500–$999 $500–$999 No Employer Contributions $1,000–$1,499 $1,000–$1,499 $1,500 or More $1,500 or More Don't KnowDon't Know Don't Know (Employee Benefit Research I Nothing Less than $100 nstitute, July 2002). $100–$299 $300–$499 $500–$999 $1,000–$1,499 $1,500 or More Don't Know private, nonprofit, nonpartisan, Washington, DC-based organization committed exclusively to see Copeland (August 2009), Availabilit 25% or Less y, Contributions, Account Bala op. cit. 32.0 8.1 nces, and Rollovers in Accou 21.6 6.5 5.1 nt-Based 26.8 Nothing Less than $500 $500–$999 $1,000–$1,499 $1,500 or More Don't Know a a spouse earnin estat g assets e, and bus who , whi had a inesle s defi and 13.ne 2 percent d plan wer of t eh a ose with a ll invested n IRA in sto were ck, compared all in interest-ear with 26.nin 7 5perc g assets. The ent for all of t 401(k hose wit )-type h out a Account Balances and Rollov participant being invested all in stocks. Co enseque r Behavior ntly, as family heads have more accounts or more wealth, they are establishe Traditid th onal =e plan-ty health plan wp ite h br no deakdow eductible orn for <$1,000 f (i and milies, usin ividual), <$2,00g 0 (the S family).urvey of Consumer Finances (SCF) that is conducted by 200 signific 6 aantly nd 20fr 07 om 19 EBRI92 /Comm –2007 o. nwealt Despit h e Fun the overall d Consum drop, erism in H family e hea alth C ds are Su who worked i rveys. n It exami the publi nes th c ade availa ministration bility i o nfdustry HRA public policy research and education on economic security and employee benefit issues. Rollover 32.2 6.8 16.4 2.8 11.1 30.6 Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care Su Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care Survey, 2008 and 2009. rvey, 2008 and Health Plans, 2006–2009 b repair services 48.1 37.5 48.9 39.6 52.1 40.0 54.9 39.9 57.3 40.8 2 Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care Su 3 rvey, 2008 and 2009. defi partici nep d ants ben Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care Su Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care Su Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care Su efi wit pla th an n. IRA were also more likely to have a stock allocation of more than half of their rvey, 2008 and 2009. rvey, 2008 and 2009. rvey, 2008 and assets than were the HDHPSource: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care Su = a High-deductible health plan with deductible $1,000+ (individual), $2,000+ (family), no account. rvey, 2008 and 2009. more likely to 2009.be more invested in stocks. EBRI’s member Furthermore, ship includes a those fami cross-section of ly heads who ar pension funds; businesses; trade associations; e invested more heavily in stocks in the 10 Paul Fro Federal n No rollove stin, Reserve Boar “Health Saving r d. s Acco This artic unts and le bui Other Acco lds u 31.9pon thunt- at 8.4 research to Based Health Plans, ex 22.8 amine t ” EBRI Issue Brief he 7.4 plan-type breakdown 3.7 , no. 273 (Employee by th 25.8 e and participated in a plan had a substantial increase in their likelihood of having both a defined benefit and defined and The amount HSA-el igi CDHP = Consumer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. obfle plans (cons money that in udivi mer-driven duals have accum health plans, ulate od in t r CDHPs), heir accou as well as nts has gro employ wn er and in over tim divi e. du Th al contri e percebution ntage of a a a The 2004 a 2009. Survey of Consumer Finances’ questions on employment-based retirement plans were significantly revised from Trans c portation, a CDHP = Consumer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. CDHP = Consumer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. CDHP = Consumer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. CDHP = Consumer-driven health plan w/ deductible $1,000+ (individual), $2,000+ (family), with account. CDHP = ^ C CDHP = Consumer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. onsumer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. Source: Employee Benefit Research Institute estimates from the 2007 Survey of Consumer Finances. a labor unions; health care providers and insurers; government organizations; and service firms. 401(k)-type participants without an IRA. Difference from prior year shown is statistically significant at p = 0.05 or better. ENROLLMENT I their 401(k ^ ) CDHP = Consumer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. -typN e plan CONSUME and aR lso own a -DRIVEN H n IRA have EALTH PLANS a high : probabi The shar lity of e of al the a so bein dultg po heavi pulation ly investe with pri d in v ate hea stocks in their lth insurance IRA. Benefit Research Institute, Se characteristics ^ ^ ^ of the participptember 2004). ating family heads and their employers. behavior, indivi contributio com duals r mu time nin ca epl ti porting t o enroll an (16. ns, ed in 4 hat th perce su ech plans, acco y nt to had nothi 33.8 pneg runt cin th ent). balanc eir acco es, uand ro nt at th llover e timbehavior. e of the survey declined from 14 percent in 2006 ^ Difference from prior year shown is statistically significant at p = 0.05 or better. prior years’ sur ^ a Difference from prior year shown is statistically significant at p Difference from prior year shown is statistically significant at p veys and retained in 2007. One of the goals = 0.05 or better. = 0.05 or better. of these revisions was to better identify the type of plan in which Difference from prior year shown is statistically significant at p = 0.05 or better. # ^ Difference from prior year shown is statistically significant at p = 0.05 or better. Sec. 401(k) plans are combined with Sec. 403(b) plans, thrift savings plans, and supplemental retirement annuities. DiffePerceived Value of Defi renc Difference from prior year shown is statistically significant at p e from prior year shown is statisticalned ly signiBene ficant at p fit Plan < 0 =.05 0.05 or better. or be ? ttFor famil er. y head 401(k) participants with a defined benefit plan, Difference between 2006 and 2009 is statistically significant at p = 0.05 or better. # # # # public utilities, and enrolle Conseque d in ntly, #acc partic ount-based ipantshe inalth plans (so-called these plans generally "co inve nsu sme t in th r-drem i ivenn " h th ee same alth plans, o mann rer, CDHPs) rema despite some part ins small icipa but nts # b Difference between 2006 and 2009 is statistically significant at p # Difference between 2006 and 2009 is statistically significant at p Difference between 2006 and 2009 is statistically significant at p = = 0.05 or better. = 0.05 or better. 0.05 or better. Difference between 2006 and 2009 is statistically significant at p = 0.05 or better. to 6 percent in 2009 (Figure 12). There were also statistically significant declines in the percentage of individuals with The joint distribution is the probability that individuals owning both plan types will have the various combinations of allocat Difference between 2006 and 2009 is statistically significant at p Difference between 2006 and 2009 is statistically significant at p = = 0.05 or better. 0.05 or better. ions across the the workers were participating. This includes Difference between 2006 and 2009 is statistically signific differentiating ant at p < 0.05 or bettebetween define r. d benefit and defined contribution, but also within 3 the percentage having more than hal EBRI’s work advances knowledge and unders f of their assets in t Figure 4 he 401(k) in stocks increase tanding of emplo d with the yper ee benefits and their ceived value of the personal and The See fin www.mercer.com dings show that th /summary.htm?idContent=132844 ere has been a significant incr 5e ase in the percentage of family heads with a defined continues to having sign two plans. Consequently, the sum of each of the elements in the joint distribution should be 100 percent ific grow. I antly diff n 20 erent 09, allocations 4 percent o ac f tross the two he adult popul plans. ation with private health insurance was enrolled in an health $200–$499 and $500–$999. In contrast, the percentage of individuals reporting an account balance of at least $1,000 the plan types. Therefore, a cash balance importance to answer was add the nation’s econo ed, and as well as a 401(k) pl my among policymakers, an, thrift the news savin media, and g plan, and 40 a the public. It 3(b) plan professional services 67.7 53.2 65.1 51.2 65.7 53.0 66.9 51.4 65.6 51.5 c defi Asset Allocation in IRAs and 4 ned benefit (Figure 6). Of those with a per 01(k)-Typ ceived define e Plans d benefit value of less than $5,000 annually, 28.6 percent Percentage of Individual Retirement Accounts (IRAs) and 401(k)-Type Plan Family The conditional distribution is the probability an individual with a specific 401(k)-type plan allocation (i.e., 75 percent or greater) will have each contribution plan (typically a 401(k)-type plan). Consequently, the manner in which participants allocate their defined reimbursement arrangement (HRA) or had a high-deductible plan with an health savings account (HSA), up 1 percent- CDHP Eligibility does this by conducting and publishing policy research, analysis, and special reports on at the time of the survey increased from 25 percent in 2006 to 44 percent in 2007. It remained at 43 percent in 2008, P 4ublic Administration 88.9 75.2 85.0 74.0 93.3 86.3 92.3 80.7 91.4 89.0 designation, among others, instead of just In contrast, a What we do mong workers with family co a 401(k)-type plan grouping verage, employer contributio as before. n levels incr However, by including these revi eased in 2009. The percenta sions in ge 12 possible IRA allocation. The row should will equal 100 percent. had mor In 2001, employers formed a coalition to e than 50 percent of their assets in stocks, comp report health care provider qua ared with 60.l2 percent ity measures, and today the of those with a perceived val group is composed not ue of Head Participants in Various Asset Allocation Categories, by Plan Types, 2007 In classifyin While these r g ewher sults provide i e IRA and 401(k)-type mportant infor plan mation on owners beh invest their as avior within retirement sets, the SC savings pla F asks if the ns, they assets in t do not include the hese plans contribution balances among asset categories will have a significant impact on the funds available for these participants employee benefits issues; holding educational briefings for EBRI members, congressional and Sage ource: E point mployee B from e the previo nefit Research I un ssti year. A tute estimat n a es of dditional the 1992, 4. 1995, 2001, 200 9 percent were 4, and 2007 S eligibl ue rvey of C for an onsum HSA but er Finances. did not have such an account. and increased to 47 percent in 2009. According to the 2009 EBRI/MGA Consumer Engagement in Health Care Survey, about 5 million adults ages 21–64 with the survey, the trends across plan types cannot be directly assessed. The revised questions appear to be better able to reporting a contribution of less than $200 decreased from 6 percent to 1 percent between 2006 and 2009, while the only of employers but also includes consumer groups and organized labor (see www.healthcaredisclosure.org/). In 2002, $40,000 or more annually. Furthermore, federal agen partici cy sp tants aff, and th with a e news perc media; eived de and sponsoring public opinion survey fined benefit value of less than s on emplo $5,000 yee Nwere type o ote: Em investe pl f oyer spons detail d: 1 on asset alloc ors i ) sall defiin stoc ned asation within the percentag ks, 2) in ae of w ll 4 int 01(k oerest-ear rkers em ) plans ployed by an e nin thg at is asse provi m ts, or 3) split. ployer w ded ho of by the fers a reti If the res EBRI remen /ICI Partici t plp an to any of ondent a pant itn s empl -sw Directed ered “split,” th oyees, bRetir ut not necessa ement e rily in retirement. While SCF does not provide theAll Stoc level of detail on asset allocation k Alloc withation in 401(k) plans found in the Overall, 8.9 percent of adults with private insurance were either in a CDHP or were in a high-deductible plan that was private health insurance, or 4 percent of the adult population with private health insurance, was enrolled in an HRA or perce identify defined ntage reporting benefit plans, a contribution particularly of $ hyb 200– rid plans such $499 decreased as cash bala from 11nc perc e plans. ent to There 3 perce fore, the increased percentage nt between 2006 and 2009. of the working heads being studied. 19 benefit issues. 13 EBRI’s Education and Research Fund (EBRI-ERF) performs the charitable, 4 annually there was interest in tiered provider networks (see Paul Fron were Retirement Plan almost twice Type as likely as the Intere next st highest group to 1%– stin, “Tiered Networks for H be inv 26%– ested in51%– all in otspit eresting ear al and Phy 76%– nsician Health Care ing assets perce Plan Data ntage Co in ll ection Project. stocks was then as However, ked. T the resu he results of lts reported i the asset a n thlloc is aation of rticle hel fami p refi lyne hea predictions ds within of IRAs and 4 behavior 01 w (k)-type ithin EBRI/ICI Participant-Directed Retirement Plan Data Collection Project, it does allow for the comparison of asset The amount of money being rolled over in the accounts from one year to the next has also increased. The percentage eligible for an HSA, but had not opened an account. educational, and scientific functions of the Institute. EBRI-ERF is a tax-exempt organization had a high-deductible plan with an HSA in 2009, up from 3 percent in 2008, 2 percent in 2007, and 1 percent in 2006. workers with a defined benefit plan found in 2004 is more likely due to better identification of plan type than to an actual The percenta and Ot ge reportin her Fact g co or ntributions of $50 Earning 0–$749 also fel 25% l, from 1 50% 1 percent to 75% 6 percent betw 99% een 200 100% 6 and 2009 Services,” EBRI Issue Brief, no. 260 (Employee Benefit Research Institute, August 2003). In 2005, employers started to (36.8 percent, compared with 19.7 percent). Figure 6 plans retireme are com nt plap nare s that ca d acros n s be demogra used both phic for categori policy decisio es and types ns and in of plan models such s owned by th as RS e p PM to ercenta predict ge of as retirees’ fut sets inveu srted in e allocations within 401(k)-type plans when controlling for the existence of other tax-qualified retirement plans (such as of persons reporting no rollover fell supported b from 23 percent y contributions to 10 and g perce rants. nt between 2006 and 2009 (Figure 13). The An additional 6.2 million adults ages 21–64 with private health insurance, or 4.9 percent, reported that they were working (Fi change to defi gure 4). for A mi ned benefit pla majority of d-size employ workers with n ers (20– s. 49 fam 9 em ily covera ployees) e ge r xpe ece rienc ive a aed an contribution o increase inf th $1,000 or mor eir probability of e. The percenta participating i ge n a of (percentage) 14, 15 Figure 13 Figure 15 Figure 11 Figure 3 Figure 7 Figure 5 Figure 9 focus on value-based insura CDHP ELIGIBILITY: Among indivi nce designs that duals wit h seek to encourage the use of traditional employment-bas high-value ed health services while discouraging the benefits and a choice of health us pl e of an, stocks, with a income. More realistic Percentage of Family Head 401(k)-Type Plan particular estim focuates of s on the futu invresting e retirees’ fi patternan ns of those with cial status ca Participants in Various Asset Allocation n both I be assessed RAs and 401(k as policymakers face d )-type plans. e cisions on defined benefit pensions and individual retirement accounts (IRAs)). percentage reporting a rollover of $1, 500 or more increased from 13 percent in 2006 to 31 percent in 2009. Some of eligible for an HSA but did not have such an account. Tahus, overall, 11.2 million adults ages 21–64 with private These data suIRAs 21.9% ggest that the higher the perceived value of a 8.6% “tradition22.8% al” define12.3% d benefit pension 6.6% plan the27.8% more likely plan. workers rec Those eiv working for ing such a th con e lar tribution gest em incr ployers (5 eased su 00 bstanti or more ally b em etwe ploye ene 2 s) e 006 x an perie d 200 nced a 7, increasi declineng si fro milar to t m 52 p hercent at of the to Amount Rolled Over from Past Year, Among Persons With Employee- Amount Rolled Over From Past Year, Among Persons Annual Individual Contributions to the Account, Annual Individual Contributions to the Account, Annual Individual Contributions to the Account, Annual Employer Contributions to the Account, services when the benefits are not justified by the costs (see Michael E. Chernew, Allison B. Rosen, and A. Mark Fendrick, 39 percent were eligible fLength of Time With CDHP or a CDHP in 2009, up from 33 and Savings Account, 2006–2009 percent in 2006. Categories, by Defined Benefit Plan Status and Account Balance, 2007 how to 11 address the economic security EBRI Issue B issues arising fro riefs are period m the icals providing exp upcoming retirem ert evaluati ent of the ons of emplo baby bo yom ge ee benefit issues and neration. the increase in rollover amounts may be a due to the statistically significant decline in the percentage of individuals who See endnote 10 for more discussion of the changes in the questions regarding employment-based retirement plan insurance, representin With 401(k)-t g 8.9 ype plan percent of tha 17.1 t market, wer a e eit6.9 her in a C21.9 DHP or a wer a a13.6 e in a high-dedu a a 7.5 ctible pl33.0 an that was account o smallest employers. 70 percent, wners were to tak but then declineed on to more 59 percen investment risk t in 2008. Ho with t wever, heir bet defi wned contri een 2008 a buti ndon ( 2009, 401 the (k)-ty pep rce e) r ntage etirem ofent work plan. ers Demographic Characteristics trends, as well ?According to as critical analy the SC ses of F, among IRA employee benefit po participants, licies an27.8 percent d proposals. EB ha RI Notes d theiris a assets “Value-Based Insurance To estimate future retirement income secu DesigAmong Persons With Employee-Only CDHP, Among Persons With Employee-Only CDHP, nAmong Persons With Employee-Only or Family CDHP Among Persons With Employee-Only or Family CDHP Only or Family CDHP ,” Health Affairs Web Exclusi With Employee-Only or Family CDHP, rity, this artic and Health Problem, 2006–2009 le v discusses th e (Jan. 10, 2007): w195-w20 e types 2006–2009 of 2006–2009 2006–2009 results that a 3). re incorporated in RSPM Our 80% a All Stock Allocation reported that they did not know how much money had been rolled over. Without a 401(k)-type plan 24.3 9.4 23.3 11.6 6.2 25.3 identification. CONTRIBUTIONS: Workers with employee-only coverage have seen their annual employer contributions decrease, eligible for an 80% HSA, but had not opene monthly d an period account. ical providing current information on a variety of employee benefit topics. 80% with family80% coverage reporting a contribution of at least $1,000 increased to 73 percent. invested all in stocks and 21.9 percent were Interest invested all in 1%int – erest-e26% arning – assets in 51%–2007, wh 76% ile– 401(k)-type plan related to participation in employment and Household Income Under $50,000, 2006–2009 -bas and No Health Problems, 2006–2009 ed retirement plans, and the asset allocation in defined contribution plans With rollover 16.2 10.8 22.8 15.2 9.1 26.0 80% 5 Account 80% Balance of 401(k)-Typ EBRI’s Pension Inv e Plan ? es Family hea tment Report d 40 provides detailed fin 1(k)-type particip ancial antsin were more likely formation on the universe of to have In 80%dustry ?Family heads who worked for employers in public administration or manufacturing had the highest while publications those Categor with fami y ly coverage have seenEarning their annual 25% employer cont 50% ributions incre 75% ase, such t 99%hat nearly 100% three- 5 More information about the surveys can be found in Paul Fronstin and Sara Collins, “The 2nd Annual EBRI/Commonwealth 12 participants had a virtually identical percentage of 27.5 percent invested all in stocks and 20.5 percent all in interest- and IRAs. I 70% n addition, the article updates previous EBRI research on these topics with results from the 2007 SCF. The Health Status— Without rollove Prior to 2009, persons wit r h hea 24.6 lth problems (as 7.5 defin 22.9 ed earlier) roll 10.9 ed over less money tha 5.5 28.7 n persons The term 401(k)-type plan is used in this st defined beudy, since SCF nefit, defined contri combined bution, Sec. 401(k) plans with and 401(k) plans. EBRI Sec. 403(b) plans and Fundamentals of Employee It was foun 70% d that a significant and growing percentage of workers with traditional health benefits were eligible for 70% proba more than bility o hal 70% f partici f of thei patin r acco g in unt inv a retirem ested i entn pla stocks as n, while th the accou ose workin nt bala g innce i agric ncreases ulture, fo to $5 restry, and fi 0,000; thsheries ha ereafter, th d t e he quarters of workers with family coverage receive a contribution of (percentage) $1,000 or more. Both the amount of money that Endnotes Fund Consumerism in Health Care Surve a y, 2006: Early Experience With High-Deductible and Consumer-Driven Health Plans,” earning assets (Figure 3). The distribution of those participants who split their assets between stocks and interest SCF is a triennial interview survey of Benefit Programs U.S. families spo offers a straightforward, b nsored by the Board o asic exp f Govern lanation of ors of th emplo e Federal R yee benefie t programs in serve System 70% 401(k)-Type Plan 20.5 8.4 21.7 13.9 8.0 27.5 with no he70% alth problems. In 2008, 11 percent of 2006 persons with 2007 no 2008 health pro 2009blems did not roll over any money, 70% supplemental retirement annuities into one category in surveys prior to 2004. For consistency purposes, the plans are account-based health plans. Among individuals with traditional employment-based health benefits and a choice of probability Family Head levels off, if not decreases, once the 20.5% account bala 8.4%nce surp 21.7% asses $100,00 13.9% 0 (Figure8.0% 6). Among 27.5% 401(k)-type lowest likelihood of participation in 2007. Among workers in public administration, 89.0 percent participated in a plan, individuals have accumulated in their accounts and the amounts rolled over from year-to-year have grown: Those Individual Contributions EBRI Issue Brief, no. 300 (Employee Benefit Research Institute, December 2006); Paul Fronstin and Sara R. Collins, “Findings the private and public sectors. The EBRI Databook on Employee Benefits is a statistical 60% With IRA 13.2 2006 6.6 2007 2008 20.6 2009 20.0 10.0 29.7 earning assets was almost identical as well between both IRAs and 401(k)s. in cooperation with the U.S. Department of Treasury, 2006 2006 wh 2007 2007 ich measur 2008 2008es t2009 he 2009 financial characteristics and status of U.S. whereas 21 percent of persons with health problems did not roll over any money, although that had fallen significantly 60% 60% grouped in this With defined benefit plan publication to allow for a comparison with prior years. Thu 11.1 12.8 22.0 s, these are 15.6 not pure 401(k) p 8.1 lan results. 30.3 60% health plan, 39 percent were eligible for an HRA or HSA-based plan in 2009, up from 33 percent in 2006 (Figure 1). 1 compared wit participants wi hth an 11.0 perc account ent balanc of workers referen e less than ic ne work o agricult $5,0 nure, emplo 00, 4 fo y3 restry, and fis ee ben .9 perc efit pr ent ogr hah ams and d more eries. work force-related issues. than half of their account balance reporting a rollover of $1,500 or more increased from 13 percent in 2006 to 31 percent in 2009. 6 From the 2007 EBRI/Comm See Jack V 60% 60% 60% a Without IRA nDerhei and Craig onwealth Fund C Copeland, “Can America Affo onsumerism in 24.2 Health Survey, 9.3 rd Tomorrow’s 22.3 ” EBRI Issue Brief, Retirees: Results from the EBRI-ERF Retirem 10.9 no. 315 (Employee Benefit 7.1 26.4 ent Individuals’ contributions to HSA plans have also increased. Between 2006 and 2009, the percentage of individuals Without defined benefit plan 23.1 2006 2007 7.1 2008 21.6 2009 13.4 8.0 26.7 families. from 35 percent in 2006 (Figures 14 and 15). Rollov 2006 2006 er amounts i 2007 2007 2008 n 2008 creased 2009for 2009 both those with and without health 18 According to a recent study, slightly more than one-half (52 percent) of workers were eligible for at least two health invested in stocks, compared with 49.8 percent of those with a balance of $50,000 up to $100,000. Furthermore, The percenta Without defined benefit plan 50% Source: Employee ge of participa Benefi nts with assets invested all in t Research Institute estimates from the interest-earni 2007 Survey of Cons ng assets decre umer Finances. ased as family income increased 13 Research Institute, March 200 Security Projection Model,” EB8); and Pa RI Issue Brief ul Fronstin, “Findin , no. 263 (Employee Benefit Research Institut gs from the 2008 EBRI Consumer Engageme e, November 2003). nt in Health Care 50% with employ 50% ee-only coverage contributing nothing to an HSA decreased from 28 percent to 12 percent (Figure 5). In The type of i 50% nterest-earning asset or stock is not identified in these questions. problems. Am 6 ong those without health problems, 15 percent rolled over $1,500 or more in 2006 and 33 percent did so a From 1 992–but spouse with one 2007, workers in publicContact EBRI administration ha 20.1 Publications, (2 d th2.9 e larg02) 659-0670; est incr 29.6 ease infax publication thei8.9 r likelihood of orders to 6.0 participatin (202) 775-6312. 32.6 g in a plan plans, thus about 2 50% 1 million workers were eligible for such a plan in 2009 but chose to remain in the more traditional 50% 50% Sec. 401(k) plans are combined with Sec. 403(b) plans, thrift savings plans, and supplemental retirement annuities. approximately 58 percent of those with an account balance of $100,000 or more had more than half of their account for participants in both types of plans 42% ($25,000 and above for IRA participants). For 401(k) #-type plan participants, this Survey,” EBRI Issue Brief, no. 323 (Employee Benefit Research Institute, November 2008). contrast, the percentage contributing between $1,500 or 41% more increased from 21 percent to 37 percent. Among 44% ^ in 2008. Fewer individuals with healt Subscriptions to h problems EBRI rolled over Issue Bri $1,500 o efs are included r more, as part of but the percenta EBRI membership, or as part of ge with such a rollover a 2 ^ (from 75. Head/Perceived Value of Defined Benefit Plan 2 percent to 89.0 percent), while those worki 39% ng in the mining and construction industry had the largest plan. Retireme Retirement Plan Participation and Asset Allocation, 2007 14 nt Plan Participation 41% balanc See Craig Co Orders/ e in 40% vested 40%peland, “Employment-Based Retirement and in stocks. Pension Plan Participation: Ge 41%ographic Differences and ^# Trends, 40% percentage decreased from 45.3 percent among family heads with family incomes of 37% $10,000–$25,000 to 12.2 percent This article does not examine the percentage of families or family heads ^# who own IRAs or 401(k)-type plans. It only 40% 37% persons with family coverage, the p $199 annual sub ercentage not maki scription n to g any 36% EBR contri I Notes bu and tions was EBRI Issue Brie unchang fs. ed Individual betwe cop en 200 ies a6 a re av nd ail 2 a008, ble Less than $5,000 annually 36.8 15.3 19.3 5.4 0.0 23.2 40% increased fro 40%m 11 percent in 2006 to 19 percent in 2008. In 2009, rollover amounts were unchanged among persons 6 40% decrease in the likelihood of participating (from 36.7 percent to 24.0 percent). Family heads worki ^# ng in the remaining 32% 32% 2008,” See Exhibit 4.2 in EBRI Issue Brief, http://ehbs.kff.org/pdf/2 no. 336 (Employee Benefit Research Institute, November 2009). 009/7936.pdf 31% In 2007, according to the SCF, 60.5 percen with prepat of ymeworkin nt for $25 each g family hea (for printed ds wocopie rked sfor a ). Change of Address: n 31% employer t 31% hat s ^# EBRI, 1100 13th St. ponsored an for those w $5,000 up to $15,000 annuall ith fa 35% mily income of $100 y ,000 or more 19.7 . The percenta 17.2 ge wit 17.9 h all their inv 7.5^estments in sto 5.2 cks was fairly 32.5 examines the asset allocation of those who do own su 30% ch30% accounts. Copeland (August 2009), op. cit., found from the 2007 and PARTICIPAT fell to 10 ION RATES AN percent in 2009. D PLAN The percen TYPE: Th tage co e perce 30% ntributi ntage ng l of family h ess thane $ ads who part 500 fell from icipate 16 perc d in ent to an employment 5 percent b-based etween 33% ^ 30% Subscriptions with no health problems. In contrast, rollover amounts increased among persons with hea 30% lth problems. Between 2008 Asset 30% Allocation Between 28% Plan Types ?One issue that arises when studying the asset allocation in one industries ex 30% perienced either no change or very small increases or declines in their le 7vels of 27% participation. 30% ^# 26% ^ $15,000 up to $40,000 annuall 28% NW, Suite 878 y 7.8, Washington, DC 16.5 , 20005-4051 21.0 , (202) 659-0670; f 15.6 ax number, (202 3.1 36.0 ) 775-6312; 30% employment 30% -based ret 27% irement plan, and 46.9 percent participated in one (Fi 26% gure 1). This level of participation is a consistent across income categories, but larger allocations to stocks increased as fa 28% mily income 27% increased. SCF that 30.6 30%percent of families owned an IRA/Keogh and 32.3 percent of all families had a member participating in a ^ ^ 200 pension 6 and or r 20e0ti7rement , and has pla s n r inc ee rema mained ine basic d unchan ally unc ged, han w ghi edle th from e 1 percent 992–200 age co 1 (at a ntributi lmost 49 ng $1,500 or percent) be more incr fore dec eased from lining 3 7 30% 23% 23% 23% 24% and 2009,$40,000 or more annuall the percentage of pers y ons with health 10.3 problems 9.5 reporting 19.9 no rollover d 19.3 ecreased from 12.821 percent 28.1 to 10 per- specific plan such as a 24% n I 24% RA or a 40e-m 1(kail: subscri )-type planptions@ebri.o is that ther own g Me er ma mbe y be rship Information: investing in a compl Inquiries reg etely difafrding EBRI erent manner See Craig Co Individuals were defined as peland, “Individual Account Retirement Plan having a health problem if they said they wer s: An Analysis of the 2007 Su e in fair or poor h rvey of Consu ealth or h mer Finances, With ad one of eight chronic Employer Contributions 22% 22% ^# small increase from 2004, when 46.1 percent of working family heads 21% participated in 21% a plan, 21% but still below the 16% ^ 19% 401(k)-type plan. Furthermore, 34.0 percent of those families th 20% at owned an IRA had a rollover IRA, but 47.3 percent of the 36 nearly perc2 ent perc in e200 ntage 21% 6 to poi 53 ^ nts p b ercent i y 2007 n to 4 2009, 6.9with most o percent. 19% Ove f that incr r that perio ease o d 19% , partici ccurring p b ation etw een in a defined 2006 and co200 ntributio 7 (Figur n (401(k e 6). )- 20% 21% membership and/or contributions to EBRI-ERF 19% should be directed to EBRI President/ASEC Head/Account Balance 20% 19% ^# 19% 19% 18% 18% 18% ^ cent, while20% the perc18% entage reportin 19%g a rollover of # at least $1,500 increased from 19 percent to 33 percent. Market Adjust in anot health co her nditions ( 20% pla ments to June 2009,” n or i arthritis, n his/he 19% asthma, 17% r other EBRI Issue Brief emphyse asset h ^ oma o ldings. r lung dis , no. 333 (Employee Benefit Research Institute, Au Therefore, ease, cancer, depression, diabetes, heart attack or other heart examini ^^ ng ^how owners of both an Igust 2009). RA and a 401(k)-type 20% 18% ^ 8 17% ^ ^ 16% 19% 19% Whil As family e the hea perc 20%dentage of IRA participants’ a workers with ges inc 16% 16% anr H e 14% ased, t RA or HSA he like pla lihood that t n whose em 16% 16% hpl ey oyer contri were investe 16% bute ds to the all in stocks account has decrease not c d unt hange il thed 15% 13% 14% 16% 14% 14% 17%14% 15% 13% 48.7 percent found 15% in 2001. From 1992 17% –2001, the perc 15%entage participating had remained in a very small range, from 20% 15% IRA assets were attributable to rollover IRAs. Less than $5,000 Chairman Dallas 31.5 Salisbury5.5 at the above ^ addr 19.1 15%ess, (202) 659-0670; 9.9 e-mail: salisbur 6.4 y@ebri.org 27.6 13% Indivi type) duals plan gre witw h fami sharly cover ply. In 200 age co ^# 7, 18 perc ntribute more t ent of fam han 14% ily in hdividuals with eads who part 13% 12% employee-only icipated in # ^ an employment coverage bec -based ause deductibl retirement es are ^# ^# 11% 14% 15% 11% 11% 12% ^ 13% 13% plan allocate their balances 12% ^ across asset classes can sho 12% # w whether the 14% y are co 12% nsistent in their choice of investment disease, high cholesterol or hypertension 10% 12% 10% 10% , high blood pressure, or stroke). 10% 12% 12% 12% 10% # 11% 12% 10% 10% participants reach 65 or older, wh 13% ere the a 11% ll stock percen 9% tage level 9% 9% ed 9%^ off. For those under 10% age 35, 35.2 percent were signific Retireme antly si $5,000 up to $20,000 nt Plan Types nce 2006, t 8% here was a drop in em 22.6ployer contributio 10.4 ns fro 20.0 m 67 percent 14.4 in 2008 ^# to 4.563 percent in 28.2 9 2009 10%^# 9% 8% 8% 8% 8% 12% 12% just under 10% 48 perce 7% nt in 1995 to a high of 48.7 percent in 2001. The sponsorship rate (the percentage of those 4 10% ^# 11% 9% 9% 9% 7% ^ 7% ^ 10% 11% 11% ^ high plan had a er for f de 10% amfily covera ined bene 10% ge. fit plan only, almost 64 ^ percent had a defined contribution plan only, and th 7% e remaining 8% 8% 6% 6% See Jack VanDerhei, Sarah 10% 10% Holden, and Lu 10% is Alonso, “401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 6% 9% 10% 5% 7% 9% 9% 7% 5% $20,000 up to $50,000 17.3 9.1 27.2 8.1 9% 7.0 31.4 15 vehicles. Figure 5 presents the joint distribution of family hea 8% d’s investment in IRAs and ^ 401(k) 4% -type plans for those Editorial Board: Dallas L 3% . Salisbury, publisher; Stephen Blakely # , editor. Any views expressed in this publication and those o 6% f th 9 e author 6% s should 10% 7% 5% 5% (Fi invested all gure 2). in stocks, compared with 22.9 percent of those ages 55 -64. Age 7%did not 5% have a significant impact on 5% ^ the Prior to the 2004 survey, ve 7% ry broad general asset categories we 6% 6% re used: 1) mostly or all in stocks, 2) 4% mostly or all in 2% In 2 working for 007, 18 an .1 perce employ nt of er th family hea at sponsored a ds who partici plan) re pma ateid n e in an d at or ju employ st ove ment-based re r 61 percentirement t from 19 4% pla 92– n200 had a 4. defined benefit 8 2% 6% 3% 3% 18.5 percent $50,000 up to $100,000 had both a defined benefit and 21.6 defined cont 4% 8.3 ribution plan. 20.3 14.9 12.2 22.7 2008,” Paul Fronstin, “Findings from the 2008 EBRI Co not be EBRI Issue Brief, ascribed to the officers, no. 335 (Employee Benefit Research Institute, Octobe trustees, members, or other sponsors of the E nsumer Engagement in Health Care Survey,” mployee Benefit Research r 2009) for the latest resu Institute, the EBRI Educ EBRI Issue Brief lts from this project. 2% 2% 2% ation and , no. 323 Conclusion 16 owning both types of plans. For example, 17.2 percent of these individuals owning both plans alloc 1% ate all their assets 0% probability o 0% 0% f a 401(k)-type participant being invested all in stocks, according to the SCF. interest-earning assets, 3) split between stock and interest-earning assets, and 4) other, although there are small differences $100,000 or more 10.9 8.3 22.7 20.0 10.7 27.4 Income Dif plan Resear only (Figure 2). ch Fund, ferences— or their Gener A staffs. ppro Nothin ally, low ximately 63. g her er-i ein is to be co n5 perce come persons nt nstrha ued as an attem d a de with H fine SAs are d contr pt to aid or less like ibution hinder the adoption pla ly to n on make a co ly, whi of anyle t pending le ntri he bution remainin gislat to th ion, g re 18. egulation, account 5 per - 0% 0% 0% (Employee Benefit Research Institute, November 2008); and Paul Fronstin, “Findings from the 2009 EBRI/MGA Consumer 0% Less than $200 $200–$499 $500–$749 $750–$999 $1,000 or More Don't Know The share of the aNothing dult Nothing popul Less than $100 ation with Less than $500 priv $100–$299 ate health $500–$999 $300–$499 insurance enrol $500–$999 $1,000–$1,499 led in accou $1,000–$1,499 nt- $1,500 or More bas$1,500 or More ed health pl Don't Know ans Don't Know (so-called Among in each worker plan tos with an stocks, whil employer contribut e 3.6 percent allocate a ion, those wi ll theitr assets in h employee bo -o th pl nly covera ans to ge int saw th erest-ear eir a ninnnu g assets. al employer or interpretative rule, or as legal, accounting, actuarial, or other such professional advice. Employer Source: Employee Benefit Research Institute estimates from the 2007 Survey of Consumer Finances Size ?The likelihood of a working family head participating in a retirement plan increased with the IMPORTAN 5 CE OF ASSET ALL Nothing Nothing OCATION: Less than $500 Less than $500 The allocat$500–$999 $500–$999 ion of retireme$1,000–$1,499 $1,000–$1,499 nt assets is affe$1,500 or More $1,500 or More cted by demograp Don't Know Don't Know hic factors (income, in the classifications between the two type Less than 6 Months 6 Months to Less than s of accounts. However, in the 2004 surve 1–2 Years 3–4 Years 5 or More Years y, more specific allocation was asked for Don't Know cent h than higher-income persons. Almost one-fifth o ad both a defined benefit and defined contri f person bution s in plan. househol This wa dss a sign with less th ificant anchang $50,0 e f 00 rom 1 in income did 992, when not See Craig Copeland, “Retirement Plan Participation and Asset Allocation, 2004” EBRI Notes, no. 2 (Employee Benefit a Nothing Less than $100 $100–$299 $300–$499 $500–$999 $1,000–$1,499 $1,500 or More Don't Know Engagement in Health Care Survey,” EBRI Issue Brief (forthcoming). Sec. 401(k) plans are combined with Sec. 403(b) plans, thrift savings plans, and supplemental retirement annuities. 1 Year "cons contributio As the e umer ducat - ns i driiv ncrease oen" nal attai healt bet nh me w ple nt of ans, or CDH en 200 the 6 a famil nd P 2 s) y rem 008, hea but d ains increas fa sma ll in ll but cont e 20 d, t09. he l B ikeli inue etw hood that e s to gro en 200 IRA 6 a w. nd Ro pa 2 llover amou rticipants 008, the pwer erce nts and account e investe ntage red portin all ing size of his or her employer. In 2007, among family heads working for employers with 10 -19 employees, 18.1 percent educatio those split between stocks and interest-earni n) and by ownership of other types of r ng assets. The etirement refore, the results prior plans: Those who own to 20 401(k 04 are not directly comparable with )-type plans and IRAs are more 4 contribut 2.3 perce e to t nt had he acco a deunt i fined be n 200 ne9 fit plan on (Figure 7), ly and 4 compare 0.8 d per with cent h about ad 9 a percent defined contri of pers buti ons with on plan o $50, nly. 000However, virt in household ually Research Institute, February 2 Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care Su Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care Su 007): 1 -9. rvey, 2008 and 2009. rvey, 2008 and 2009. Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care Su Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care Su Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care Su rvey, 2008 and 2009. rvey, 2008 and 2009. rvey, 2008 and 2009. EBRI NoSource: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care S tes is registered in the U.S. Patent and Trademark Office. ISSN: 1085 -4452 1085 -4452/90 $ .50+.50 urvey, 2008 and The bottom portion of Figure 5 looks at the conditional probability of what will be the investment allocation in the IRA, Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/MGA Consumer Engagement in Health Care Survey, 2008 and 2009. interest-earni balances in ac ncount-based h g assets decreeased. alth plans Specific have incr ally, 3e 4ased. .4 perc This ent of fam may be due to ily head I the fact RA partic that individuals have had CDHPs ipants without a high school that their em a a ployer contributed $1,000 or more to the account increased from 26 percent to 37 percent (Figure 3). In a a a participated in a plan. In comparison, 68.8 percent of family heads who worked for employers with 500 or more likely to beCDHP = Consumer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. 2009. inv CDHP = Consumer-driven health plan with deductible $1,000+ (individual), $,2000+ (family), with account. ested all in stocks if they also own the other type of plan. Ownership of a defined benefit plan also is the results from the this stud a CDHP = Consumer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. CDHP = Consumer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. CDHP = Consumer-driven health plan with deductible $1,000+ (individual), $,2000+ (family), with account. y, but since the results in this study for 2007 have the percentage of assets invested in stocks all of income the who cha di nge occ d not contri urred bu prte ( ior to Fig199 ure 8 8, ). ex For cept both for a inco sign mificant e groups declin , the e p in defi ercenta ned geben contributi efit only cover ng $1,50 age t 0 orhat occ more urred CDHP = Consumer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. a given a ce ^rtai ^ n amount of stock investment in the 401(k)-type plan. Of those investing more than 75 percent of their ^ ^ ^ CDHP = Consumer-driven health plan with deductible $1,000+ (individual), $2,000+ (family), with account. 200 diploma for a 9, it longer fe were Difference from prior year shown is statistically significant at p ll to Difference from prior year shown is statistically significant at p period of t 32 invested all percent. ime t in The hinterest-earni an i per n th cen e past. It may tage ngof assets, com workers = 0.05 or better. = 0.05 or better. also with an emplo be pare because d with in 18. yer dividuals hav 1 p contri ercent butio amo e n increase of ng t less tha hose w d tn h ith ei $20 r contri a colle 0 increase butions ge ded from gr to ee. ^ Difference from prior year shown is statistically significant at p 10 = 0.05 or better. employees Difference from prior year shown is statistically significant at p par Difference from prior year shown is statistically significant at p ticipated in a plan. From 1992–20 = 0.05 or better. =07, 0.05 or better. family heads who worked for the smallest employers (fewer than correlated reported by quartiles, a general comparison can be made Difference from prior year shown is statistically significant at p wit ^ h an increased probability of a 401(k = 0.05 or better. )-typa e gpartici ainst the more general cate pant being invested all gories. See Craig Copeland, in stocks. from 2004–2007. # # Difference from prior year shown is statistically significant at p = 0.05 or better. # # # assets in stocks in their 401(k)-type plan, 50.4 percent invested all of their assets in stocks in their IRA and 61.8 per- # Difference between 2006 and 2009 is statistically significant at p Difference between 2006 and 2009 is statistically significant at p = 0.05 or better. = 0.05 or better. Difference between 2006 and 2009 is statistically significant at p Difference between 2006 and 2009 is statistically significant at p Difference between 2006 and 2009 is statistically significant at p = = 0.05 or better. 0.05 or better. = 0.05 or better. This pattern # also emerged fo © 2009, Emplo r 401(k yee B )-ty enefit pe plan Research Institute participants. -Education and Research Fund. All rights reserved. 3 percent to 8 percent between 2008 and 2009. Difference between 2006 and 2009 is statistically significant at p = 0.05 or better. 10 employe Difference between 2006 and 2009 is statistically significant at p es and 10–19 employees) had decreases = 0.05 or better. in their likelihood of participating in a retirement plan, while those ebri.org Notes • November 2009 • Vol. 30, No. 11 ebri.org Notes • November 2009 • Vol. 30, No. 11 ebri.org Notes • November 2009 • Vol. 30, No. 11 ebri.org Notes • November 2009 • Vol. 30, No. 11 ebri.org Notes • November 2009 • Vol. 30, No. 11 ebri.org Notes • November 2009 • Vol. 30, No. 11 ebri.org Notes • November 2009 • Vol. 30, No. 11 ebri.org Notes • November 2009 • Vol. 30, No. 11 ebri.org Notes • November 2009 • Vol. 30, No. 11 17 12 11 20 8 6 9 5 4 ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org A monthl ebri.org ebri.org ebri.org Notes • November 2009 • Vol. 30, No. 11 No No No No No No No No No No No No y ne tttttttttttte e e e e e e e e e e essssssssssss w • November 20 • November 20 • November 20 • November 20 • November 20 • November 20 • November 20 • November 20 • November 20 • November 20 • November 20 • November 20 sletter from the EB 09 09 09 09 09 09 09 09 09 09 09 09 RI Education and • Vol. 30, No. 1 • Vol. 30, No. 1 • Vol. 30, No. 1 • Vol. 30, No. 1 • Vol. 30, No. 1 • Vol. 30, No. 1 • Vol. 30, No. 1 • Vol. 30, No. 1 • Vol. 30, No. 1 • Vol. 30, No. 1 • Vol. 30, No. 1 • Vol. 30, No. 11 1 1 1 1 1 1 1 1 1 1 1 Resear ch Fund © 2009 Employee Benefit Research Institute 15 10 14 19 13 16 21 22 23 18 2 7 3 Figure 3 a Percentage of Individual Retirement Accounts (IRAs) and 401(k)-Type Plan Family Head Participants in Percentage Groupings of Equity Allocation, by Family Head Characteristics, 2007 ^ 16% a Figure 2 IRAs 401(k)-Type Plans Retirement Plan Type of Family Head Participants by Employer Size and Industry, 1992, 1995, 2001, 2004, and 2007 All Stock allocation All Stock allocation 1992 interest 1%– 1995 26%– 51%– 76%– 2001 interest 1%– 26%– 51%– 2004 76%– 2007 a b a b a b a b a b Category DB DC Both Any earning DB 25% DC 50% Both 75% Any DB 99% DC 100% Both earning Any 25% DB 50%DC 75% Both 99%Any100% DB DC Both Any a b b a b b a b b a b b b Total only only DB DC DC21.9% only 8.6% only 22.8% DB DC 12.3% DC 6.6% only only 27.8%DB 20.5% DC DC 8.4% only 21.7% only13.9% DB DC8.0% DC 27.5% only only only DC (percentage) Family Income <10,000 29.2 0.0 14.4 12.2 14.0 30.2 b b b b b b All 42.3% 40.8% 17.0% 57.8% 27.2% 56.2% 16.1% 72.3% 21.3% 61.5% 17.1% 78.7% 25.8% 56.3% 18.0% 74.2% 18.1% 63.5% 18.5% 82.0% $10,000 up to $25,000 29.3 9.7 27.6 6.1 2.9 24.4 45.3 2.8 9.0 11.1 1.7 30.2 Employer Size $25,000 up to $50,000 30.6 10.4 23.4 10.6 5.0 19.9 31.6 10.2 22.3 6.9 4.3 24.6 Fewer than 10 employees 34.2 56.4 9.4 65.8 45.7 49.6 4.7 54.3 16.5 77.1 6.4 83.5 30.1 63.8 6.2 70.0 10.0 86.1 3.8 90.0 $50,000 up to $100,000 19.8 10.3 23.1 11.2 7.7 27.9 19.7 8.1 23.6 15.2 6.4 27.1 10–19 63.0 30.1 7.0 37.1 31.2 64.7 4.1 68.8 12.8 80.5 6.7 87.2 18.2 73.5 8.3 81.8 6.9 91.8 1.4 93.1 $100,000 or more 16.5 6.0 21.4 15.7 7.3 33.2 12.2 8.5 21.1 16.8 12.4 29.0 20–99 38.0 54.6 7.4 62.0 26.8 64.3 8.8 73.1 15.3 76.3 8.4 84.7 20.1 69.9 10.0 79.9 15.3 73.7 11.0 84.7 Age of Head 100–499 44.4 44.0 11.6 55.6 23.2 63.6 13.2 76.8 22.0 64.6 13.4 78.0 30.2 54.9 15.0 69.8 20.6 66.3 13.2 79.4 <35 17.9 12.7 13.0 10.3 10.8 35.2 26.0 7.7 19.7 12.8 9.9 23.8 500 or more 41.6 36.8 21.6 58.4 28.1 52.2 19.7 71.9 23.5 54.3 22.2 76.5 25.9 51.6 22.6 74.1 18.8 58.0 23.2 81.2 35–44 19.7 8.1 23.4 11.3 7.0 30.6 18.8 6.5 22.6 13.3 9.2 29.7 Industry 45–54 21.0 7.7 21.6 14.4 6.3 29.0 17.0 11.0 22.8 15.4 5.8 28.0 Agriculture, forestry, 55–64 15.9 9.6 28.7 15.4 7.6 22.9 22.3 8.0 18.3 13.8 8.4 29.2 and fisheries 29.8 70.2 0.0 70.2 43.8 56.2 0.0 56.2 0.0 83.7 16.3 100.0 25.8 60.4 13.8 74.2 17.3 82.7 0.0 82.7 65–74 27.7 7.9 21.6 11.8 5.4 25.5 16.7 4.3 36.6 12.5 7.8 22.2 Mining and construction 42.6 43.9 13.5 57.4 31.5 60.6 7.9 68.5 23.9 55.6 20.5 76.1 28.3 57.6 14.1 71.7 24.2 61.8 14.0 75.8 75+ 36.8 5.4 24.6 4.6 1.9 26.6 b b b b b b Manufacturing 34.5 43.5 22.0 65.5 22.3 60.9 16.8 77.7 18.4 64.4 17.2 81.6 19.6 64.8 15.7 80.5 6.2 78.2 15.6 93.8 Wholesale and retail trade 26.5 61.2 12.3 73.5 18.7 69.8 11.5 81.3 12.5 74.1 13.4 87.5 9.7 ^ 75.5 14.8 90.3 10.6 81.3 8.1 89.4 11% Education of Head 7% Finance, insurance, real No high school diploma 34.4 9.4 28.7 4.5 0.0 23.0 36.0 8.4 20.7 4.2 0.0 30.8 estate, and business and High school diploma 30.6 11.7 21.9 10.3 2.0 23.5 30.8 12.1 19.8 6.5 3.3 27.5 repair services 28.0 48.5 23.5 72.0 18.1 58.0 23.9 81.9 9.6 72.2 18.2 90.4 17.0 67.4 15.6 83.0 8.3 71.8 19.9 91.7 Some college 21.7 8.1 23.1 10.0 4.9 32.2 23.8 8.3 25.8 10.1 6.2 25.7 Transportation, College degree 18.1 7.5 22.7 14.1 9.2 28.5 13.6 6.7 21.3 19.2 11.4 27.8 communications, Race public utilities, and White Non Hispanic 21.7 8.3 23.4 12.9 6.7 27.2 17.7 8.7 21.8 14.9 9.8 27.2 personal and Nonwhite 23.7 10.5 19.4 7.9 6.5 32.0 28.0 7.6 21.5 11.3 3.4 28.2 ^ professional services 50.3 35.6 14.1 49.7 30.1 55.4 14.5 69.9 26.0 60.1 13.9 74.0 29.0 54.6 16.4 71.0 20.4 61.4 18.3 79.6 59% Net Worth Percentile Public Administration 60.2 23.4 16.4 39.8 48.9 29.4 21.7 51.1 39.0 30.0 31.1 61.0 46.8 18.3 35.0 53.2 37.7 28.5 33.8 62.3 Bottom 25% 24.1 11.8 17.7 13.7 8.8 23.9 29.3 9.1 17.3 11.8 7.8 24.6 Source: Employee Benefit Research Institute estimates of the 1992, 1995, 2001, 2004, and 2007 Survey of Consumer Finances. a 25%–49.9% 22.6 14.4 20.9 10.1 6.4 25.6 19.2 10.8 25.7 10.8 5.2 28.3 Defined benefit pension. b 50%–74.9% 25.1 7.5 27.1 10.8 4.3 25.2 18.4 8.1 22.6 14.1 8.6 28.2 Defined contribution (401(k)-type) plan. 75%–89.9% 20.8 6.4 24.2 12.6 5.5 30.5 15.1 3.6 19.6 18.6 11.4 31.7 Note: The 2004 SCF revised the retirement plan identification variables, so the time series should be used with caution. Top 10% 14.8 4.6 18.7 15.8 11.3 34.9 12.2 6.3 23.3 22.0 10.8 25.4 Source: Employee Benefit Research Institute estimates from the 2007 Survey of Consumer Finances. a Sec. 401(k) plans are combined with Sec. 403(b) plans, thrift savings plans, and supplemental retirement annuities. b Fewer than 10 observations.