“How Much Needs to be Saved for Retirement After Factoring In Post-Retirement Risks: Evidence from the EBRI Retirement Security Projection Model,®” and “Employer and Worker Contributions to Health Reimbursement Arrangements and Health Savings Account ..

Savings needs: How much do workers need to have saved for retirement at different ages? And based on their age and income, how much needs to be contributed to their defined contribution plan to ensure a financially successful retirement? New research from EBRI helps answer these important questions. Health account contributions: Both employers and workers decreased their contributions to health savings accounts (HSAs) last year, according to new research from EBRI.

How Much Needs to be Saved for Retirement After Factoring In Post-Retirement Risks: Evidence from the EBRI Retirement Security Projection Model,®

This analysis helps answer one of the most important questions that many defined contribution participants face before retirement: How much do I need to save each year for a “successful” retirement? It includes three of the major post-retirement risks (longevity, investment, and long-term care) while allowing the participant to also choose the probability of “success” that is best suited for their circumstances.
Given the assumptions used in this Notes article, a single male age 25 earning $40,000 with no previous savings would need a total contribution rate (employee and employer combined) of less than 3 percent per year until retirement (age 65) for a 50 percent chance of success. A 6.4 percent contribution rate would achieve a 75 percent success rate and a 14 percent contribution rate would achieve a 90 percent success rate. But if a male earning $40,000 were to wait until age 40 to begin saving, he would need a 6.5 percent total contribution rate for just a 50 percent chance of success and a 16.5 percent total contribution rate for a 75 percent chance of success; a 90 percent probability of success would be impossible even with a 25 percent contribution rate.
The analysis also shows how large a participant’s current account balance needs to be, by contribution rate, to be “on-track” for a particular level of retirement success.

Employer and Worker Contributions to Health Reimbursement Arrangements and Health Savings Accounts, 2006–2014

This report presents findings from the 2014 EBRI/Greenwald & Associates Consumer Engagement in Health Care Survey (CEHCS), as well as earlier surveys, examining the availability of health reimbursement arrangements (HRAs) and health-savings-account (HSA)-eligible plans (consumer-driven health plans, or CDHPs). It also looks at employer and individual contribution behavior.
The percentage of workers reporting that their employers contribute to the account decreased in 2014 for the first time since 2009. Among individuals with individual coverage and employer contributions, the percentage with contributions between $200–$999 decreased while contributions of $1,000 or more increased in 2014.
Workers’ contributions to their HSAs decreased slightly in 2014.

Figure 5 Figure 3 Figure 1 Figure 7 Figure 9 Figure 1 Figure 3 Figure 5 Figure 9 1 11 Figure 7 Figure 1 Among income-r and t References Age 55 Minimum Contribution Rate Results Under t Su Age 40 Endnotes ? Develo he h worker impac e e same set o late ped mmary d, several ts with of a b futur udg family f assu D e et to m of con a t c mptions, a h ta from Figures 1–6 tem o ribution verage, an(especiall age my s empl 55 to de hea -year-ol y those oyer contri filth necare e d contribution d f deali emal xbuti n pg eens w on curr es ith leve . ( ently long-te DC) ls w p ear le ans, rm care re ning $ mostly unch makes it 40,0 prior 0 t 0 o di and just starti a qua nge fficu d lificat lt to betw ion displ een n for Me g to ay the 2010 save dicai an results d 2 d wo ) 0 will uld 1of a 3 . Employer and Worker Contributions to Health How Much Needs to be Saved for Retirement After a a b Probability Probability of Not of NotRunning Running Short of Money Short of Money in Retirement in Retirement for a for a Male A Male Ag ge e 55, 40, Percentage AMinimum A Minimum A nnu A A Aal Employ n n nn n nu u ual Indiv al Indiv al Indiv of Indiv cco cco er Contributions un un iiiidual Contributions dual Contributions dual Contributions duals t t Balance Balance With T Required Required raditional to an to to to HRA for for an an an Employ A A HSA HSA HSA d dor HSA eq eq,,,uat uat * * * me e e, nt- Probability 15 of Not AnnRunning ual IndiviShort of Money dual Contributions in Retirement to an HSA,for a * Male Age 25, large be income The 1 have only per num Males: Males: centa a ber -inv 4g 1ariant. of alter e re percent Fi Figure gure portin 9 3 n ative pro provides th provides th g eb m paths to r abil ployer co ity of e minim e pro suc entri tire bcess even abilities butions ment in um ac o count of afif mea not $1, the balanc runn 000 ningful contri or mor ing short of ebutio s fashio requ e nwas ir rate were 25 n. ed for mon 5 9 perce adequate ey inn retir t in percent. retir e 20 me 13nt for e ( For a ment Figure a mal 55-year income 4) but e age at 5 -old female fell 40, 0to , as a Bajtelsmit, Vickie, and Anna Rappaport “The Impact of Long-Term Care For ex Costs on Retir ample, given th ement e assu Wealth mption Needs,” in s used in th is b c Age 25 as as a a Function Function of of Current Salary Current Salary and Future and Future Total Contribution Total Contribution Rates Rates The number of active participants in private Contribution defined bene Rate Req fit plans dropped uired from 27.2 million in 1975 to 15.7 million in Reimbursement Arrangements and Health Savings as a Based Function A AA A m m m m o oRetirement Retirement o o ng People ng People ng People ng People Health Benefits Offered HDHP of Current Salary With With Income at 50, 75, Income at 50, 75, With With Employ Employ Employ Employ and Future ee- ee- ee- ee- O O O O nl nl and 90% and 90% nl nl y yy y Cov Cov or or or CDHP Total Contribution Family Family e erage, 2006–2014 rage, 2006–2014 Probability Probability , Cov Cov 2006–2014 e erage rage ,, Rates Among People With Employee-Only Coverage and Factori ? Asked forng In Post-Retirement a generic drug instead of a brand name druRisks: g. Evidence from the EBRI 75 a function earnin 51 perc nd 9 g ent in 201 of cur $6 0 5,0 per00, a cent rent salary 4.n proba 18.5b an pe ilitd future y levels rcent contr by tot total ibucontributio al contri tion ratebution wo n ra uld rat tes for t provide es an hd sal a ree diffe 50ary for a perc reent nt c mal pro urre b e age n ability o t salary lev 55. f succ Thee ls: $2 numbers ess. 0,000, in the first Society of Actuaries Monograph Managing the (see Impact text for assumptions) of Long-Term Notes C artic are le, Nee a male age ds and Expense o 25 earni nng Re $ tirement 40,000 with 50% (see text for assumptions) March 2015 • Males: Vol. 36, No. 3 Figure 1 provides th by by and Household T To o e pro tal tal and No Health Engagement, Contribution Rates Contribution Rates babilitiesIncome of not runn Under $50,000, 2006–2014 ing short of and and Salary Salary 2009–2014 mon : : Male Male ey in A A retir g ge e 40 55 ement for a male age 25, as a an HSA for Less than (see text for assumptions) Three Years, 2010–2014 2012. During that same time, the number of active participants in private defined contribution plans increased from 11.2 12 2006 2007 2008 2009 2010 2011 2012 2013 2014 2006 2007 2008 2009 2010 2011 2012 2013 2014 for a "Success" Rate of: Instead, t The Accounts, 2006–2014 baseline his version of EBRI Note the s arti model cle uses used a vari for this an ety of styli alysis zed assumes all preretirement workers re examples tire a with t age 65, that different co they immediat ntribution rates, ely ® column o $40,000, an 70 f th %10 d e 0% $65, grid00 show 0. Aga that in, it is , und assume er these d that assumptions, the 40-ya 55 ear-ol -year d has -old n o male at previo a us savings. Even $65,000 salary l weiv th a tota el would l need to Security 10 50 35 0% % $ % 250 . (2 ,000 014). https://www.soa.org/Library/Monographs/Retireno pr ment-S evious sa ystems/managi vings wo ng-impact-ltc/2 uld need to hav 014/mono- e a total function Retirement Security Projection Model of cur 60% rent salary and future total contribution rates (employee and employer combined) for three different million to 75.4 milli $450,000 on. The active-participant definitions were changed beginning with the 2005 Private Pension Plan Bulletin ? Asked my 40% doctor to recommend a less costly prescription drug. 45% Where the world turns for the facts on U.S. employee benefits. 44% begin salary draw levels, and 45% ing benef ages for both its from 50% Pro Social bability genders of Sec Retirement urit an yd t and defin hen simulates the result e75% d bene Probability fit pla of Retirement ns (if any s with the ), an ful d,l t stochastic post-retirem 90% o the ext Probability ent t of Retirement hat the sum o ent mfo their dule 90% Probability of Retirement Income have acc contributio umul n ra ated at te of 16 percent eac least $30,286h by t year his age until ret to ihave a rement age, 50 percent a styli pr zeobabil d employee ity of su cuccess with rrently earnin a 4.5 percent g $20,000 wo futu uld re 2014-managing-ltc.aspx 50% Pro bability of Retirement 2006 20 07 2008 75% 2009 Probability 2010 of Retirement 20 contributio 11 20 12 n ra 2013 te (employ 2014 ee and employer By Paul Fronstin, Ph.D., Employee Benefit Research Institute, and Anne Elmlinger, Greenwald & Associates current salary levels: $20,000, $40,000, and $65,000. It is assumed that the 25-year-old has no 37%previous savings. A Individual Contributions to HSAs Minimum Account Balance Results 2006 2007 2008 2009 2010 2011 2012 2013 2014IncomeAdequacy, by 42% and added Gender ® appAge roximately 9.2 Salary Income millAdequacy, ion active defined contribution participants 50.0% by 75% 90% Income Adequacy, by but only appr Ade oximately 200,000 active defi quacy, by Contribution Rate ned By Jack VanDerhei, Ph.D., Employee Benefit Research Institute 31% 90% 40% expenses an of RSPM 45 90 to % %d find t uninsure he ove d m rall edical proba ex bpenses ility of exc success for e eed the pr ach sty ojected, a lizedf ter exa -tax an mple. nual To sim inc pome from lify the an tho alysi se sources, s, the simulations $400,000 IncomeAdequacy, by IncomeAdequacy, by 39% 39% 2010 2011 2012 2013 2014 39% 30% contributio have only a n ra 50te, but only percent pro $7,172 at b Coabil ntribut ity of ion Rate a suc 9 cess. percent future contributio Contributionn ra Ratete (and no current balanc Contributioe would n Rate be required 40% 60% combined) of less than 3 percent per y 34% ear for a It was foun 35% d that individuals38% with some engagem 2009 ent 2010with th 2011e health 2012 c20 are system co 13 2014 ntributed higher amounts to their stylized male employee at this age currently earning $20,000 would need to have a total contribution rate of benefit participants. U.S. Department of Lab 30 40% % Contribution Rate or (2014). Contribution Rate 29% 13 Individuals’ contributions to HSAs had been growing until 2011, but have declined since then. Between 2006 and 37% 37% 37% Age 40 Deloitte Retirement Consu lting and Inv and health benefits are at the heart of w Current Salaryestment Company Institute, Define 33% d Contribution/4 orkers’, emplo 01(k) Fe ye e rSt s’, and our nation’s udy: Inside the Structure perform immediat ed for ely $200 b e ,000 this article gin to with do draw mon not account ey fro fo mr any their in net divid hous ual acco ing equity or unts (d a efi ny possibl ned contr e ibution define an d ben d ca efit sh bala accruals. nce pla ns, as 50% 32% 37% 48% for this stylized individual to achieve a 50 percent probability of success at a 15 percent future 39% con 37% 32%tribution rate). Male 8025 % $20,000 6.8% 35% 16.5% 31% >25% 35% 35% 50 percent chance of success. He could achieve a HSA than those w 27% ith no engagement. In 2014, 20 percent with no engagement with the health care system approximately 40 80 $ % % 350,000 6.8 percent of salary each year until retirement (age 65) for a 50 percent proba 31%bility of success 34% 34% 27% 34% How Much Needs to be Saved for Retirement After 201economic security 1, the percentage of $20 in ,000. Fo dividuals unded in 1978, EBRI is with employee-only coverage the most authoritative and objective source of contributing nothing to an HSA decreased from Introduction Introduction of De35 fin %ed Contribution/ 401(k) Plan Fees: A Study Assessing the Mechanics of the ‘All-In’ Fee. November 2011. Males: Figure 7 provides the minimum account balances required for adequate retirement income at 50, 75, well Und as IRAs). er the same set of assump If there is sufficient mo tions, aney t 40-year-ol o pay d mal expens e e currently s without earn tapping ing $4 into t 0,00h 0 a e ta nd just startin x-qualified ing dito save wo vidual account uld s, 2 33% 33% 30 35% % 29% 29% 32% 32% Munnell, Webb and Hou (2014). 75 percent success rate with a contribution rate of contributed nothing (Figure 11), while only 11 percent with some engagement contributed nothing (Figur 35% e 12). In (defined as 50% not running short of money in retirement) and a 16.5 percent contribution rate for a 75 percent success 28% 31% 31% The 28 perc information on these critical, complex issues. results ar ent to e use 11 perc d f ent i$40 rst to ,000 (Fig assist in det ure 5). At te hre same t mining the ime, t per he centage of percentage contributin compensationg th $1,500 or at would more increased need to be saved i frofm 25% 28% 32% and 90 percent probability levels by total contribution rates and salary for a male age 40. The numbers in the first Employers As defined co $ hav 300 70 ntributio ,000 % e b 24% een int n plan eres s continue ted in brin to ginbecome g aspects more of co important to nsumerism int retirement o health inco plans m for ma e for privat ny yea e-sector rs. As far worker back s in as If th those bal have a Factori e stylized 50 ance pers cent ng In Post-Retirement Risks: Evidence from the EBRI 55-y are assume e proba 24% ar-old m bilit d to be i y of succ ale at a n$6 veste ess w 5,0d 00 salary ith a in approx non leve -imat tax- l woul advanta ely a d 6.5 pre g perc ed fer a ccount a 75 ent f perce uture wher tota nt probabi e the i l contri nvestmen lity of bution success instea trate. But income is tax eved n, he e if d Male 35% 25 $40,000 <3% 6.4% 14.0% 70% 29% 29% Finke, Michael, Wade D. Pfau, and David M. Blanchett. 2013. “The 26% 4 Percent Rule Is Not S 26% afe 30% in a Low-Yield World.” 30% 6.4 percent and a 90 percent success rate 40% 30% with a contrast, 40 percent of those with no engagement with the health care system contributed $1, 39%500 or more, whereas rate. At this sa $150,000 lary level, even if this individual woul 28% 28% d cont 28% ribute at a rate of 25 percent of salary each year until 1 40% $65,000 22% starting out 3 21 percent in at200 age 6 to 25 44 under percent i stylize n d201 salar 1. yMore rec levels an ently, d cont bet ributio ween n rat 201 es for ma 1 and 20les a 14, tn he d femal percee ntag s. Ien of addition indiv 22%idua to t ls he ® 27% column of 30 th %e grid show that, under these assumptions, a 40-year-old male earning $65,000 would not need any would as ordinary the contr the Unit 1978, th need ed ey a ibutio Sta in a dcome. In opted Sec. minimum ac tn es, rate there wdividual acco ere 1 is r co 2 in 5e creased to 1 unt caf newe e balanc 22% teria d unts a inter pla e at 6 est in re tracked n .5 that a s and fl percent, providing gexi e of unti the ble $l spen 145, the poi pro them b 06 din abi with 1 w n g lity of t at acc ith info which o a 4.5 unts. More r success woul rmation on p they ercent ar appropriat e depl e future d be cently, em only eted. At contri 75 e cont ploy b pe that ution rat ers have rcent. ribution point, e. T rates, an hiy net s as 21% 21% VanDerhei (September 2006 25% 28% ). 26% 21% Retirement Security Projection Model, Journal of Financial Planning 26 (6): 46–55. p. 2 21% $250,000 23% contributio 23% n rate of 14 percent. However if a male 49 percent o60 f thos % e with some engagement with the health care system contributed $1,500 or 29% more. retireme EBRI focus nt, he woul es solel d reach 20% y only an 20% on emplo 23% 86 per yc ee ent 20% benefits research — no lobb probability of success. ying or advocacy 35% . EBRI 30 Employee % Benefit Research Institute Notes (ISSN 1085 -4452) is published monthly by the Employee Benefit Research age-25 reportin results g t 40 60% h %at ,they contri the contribut 20% butie on ana d nothin lysg to is is their HSA also expan incr ded to those eased from first 11 perc beginni ent to ng to s 23 perc ave at a ent, gand es 4the 0 anpercentage d 55. Male 25 $65,000 <3% 22% 22% 4.2% 8.2% existing balan 25% ces at that age to achieve a 50 percent probability of success, even if his future tota 34% l contribution rate is well increasin as bench gly tu m rned arks on appr their atte opriate levels ntion to consu of accou mer enga nt gem balae nces at var nt in health io c us ages. are. In 2 Th 001, ese actions they intro woul ducd h ed consum elp work er- ers driven decreases housing e20 q to $ uity % 122, is assumed to 095 at a 9 be perc adde ent d to futur r 19% e e contri tirement butio savi n rate an ngs in td o he f nly orm o $81, f a l 912 at ump a -su 15 m d peircent stribu cont tion (n ribution ot a r rate. everse I f a th 19% 19% Current Salary 32% Institute, 1100 13 St. NW, Suite 878, Washington, DC 20005-4051, at earnin $300 per g $4 year 0,0or 00 wer is included e to wa 18% as it part unti of l aa gmembership e 40 to begin 25%EBRI stands alone in employee benefits research as an independent, nonprofit, and nonpartisan 4 18% 18% 18% 25% 23% Munnel For a reportin 40 l, Alici g t -year hat a -old mal , Anthony they contri e earni We but 25% bb and e nd g $1, $65,00 500 or Wenl 0, a iamo ng Hou, 3 percent re fell “Ho from cont w 44 percent Much ribution Shou rate to ld 30 percent. Peopl would provi e Saved ?” Cente e a 67 perc r forent Reproba tirement bility o Rese f arch, $200,000 17% only 4. See Figures 1 5 percent of salary 20% 1 and 12 of Va per year. nDerhei (Febru The $12,956 val ary 2014) for ue in more detail. the first column for the $40,000 salary could be used as a 90 determi annuity mort health perc pla ent ne ns wh pr ( gage obabil C ether t DHPs (RAM ity of )—a hey a )). su combination re “on If ccess is desir all t -track” for he retire of h ement savin d inste igh an a de ffor ducti ad, t dable gb h s le e minimum are e s retirem (at l xhauste eas et $ nt or ac1 d and if co ,250 unt balanc will in nee th 2014 d e Soc to es ) in a n ial Se nd ta crease th eeded woul curity a x-pre eir c ferr n d d o e in ntributio d s defi crease ane vind gn s ben or s, delay efit subscription. 50%Periodicals postage rate paid in Washington, DC, 17% and additional mailing offices. POSTMASTER: Send 25% $100,000 24% Under the same set of assu 30% organization. It analyzes a mptions, a 25-year-ol nd reportd mal s resea e currently rch data e without arning $4 spin o 21% 0,00r 0 w unde ould have a rlying agend 58 p a. ercent All fin dings, 50% 16% $20,000 Employer and Worker Contributions to Health 20% saving for retirement, th 21% e situation becomes far The Female results ar e ne 25 xt $20,000 used to provi 9.6% de infor mation for 20.5% th 17% thos>25% e who have already been saving a 16% nd want feedback on 17% 16% success, whil July 2014 e Nu a contr mber 14 ibutio 22% -1n 1. rate o f 4.8 percent would provide a 75 percent 15%probability of success and a 9.6 percent Conc address lusio changes n to: EBRI Notes, 1100 13 St. NW, Suite 878, Washington, DC 15% 20005-4051. Copyright 2015 by guideline 30 for t % he minimum balance that should already be accumulated if all other assumptions re 15% main constant (e.g., their spendi expected retirem ng accounts that ent work age, modi ers and the fy thieir r families ca expected stan n us 19% e to dards o pay th 21% f living in r eir out-of 21% etirem -pocket ent, health or (impl care icitly) expenses. A accept a lo fewer w correspondingly: a mi payments are not suffnimum icient t 19% of o pay $2 19% 72,7 expense 69 wo s, the i uld be r ndivi equ du ired with al is designated as a 19% 4.5 percent having ru 21% future contri n short o butio f mo n rate, $ ney at t 24 h3 at ,29 poi 1 if nt. 20% 19% whether on financial data, options, or trends, are revealing and reliable — the reason EBRI information is 5 15% 20% probability o $150 f success with ,000 just a 3 percent future total contribution rate, but would need to increase it to more difficult: $ 18% 40,0 In t 00 his case, he would need a wheth Among Employee Benefit er th peop eir le account with fam Research Institute. All rights reserved, Vol. 36, no. balan ily co cverage, es are larg contri e enoug bution h to leve pro ls f ve ide ll sli for a g 3 htly . succ in 2 essful ret 014. The irem perc eentag nt with e not a ran ma ge o king a f proba ny bilities. VanDerhei (February 201 40% 4) and Bajtelsmit and Ra 17% ppaport (2014). 17% Reimbursement Arrangements and Health Savings 20% 13% 14% 13% 14% contributio 15n % rate would increase it to 90 percent. 18% 13% future total 15 40% %contribution rate of 4.5 per 16% cent, retirem 18% ent age of 65, and a d 16% esired 50 percent probability of success). the future con proba employers About b15 ility o perc firs the f a “succ t started o ent of the po tribution gold sta essful” rate i n ffdard eri pulation retireme ng C s 9 fo percent, a D r HPs i priva was nt. T n tenrolled in a C e 2 hn analysts a 001, e Employe d $196,66 whennd e the 2 if the futu D BHP e de ynef 16% be cisi in it R gan 20 16% on e14, to of searc re co make rentributio fh Institute presenti e rs, r he gove alth ng about 2 n rat rreim nme (EB e is 15 R bursement nI) t policy and others 6 mil percent. m lion arr ake indivi angem have rs, the media, and duals previo ents wit (HRAs) usly h 17% Current Salary 15% U.S. De Female partm e25 nt of Labor $40,000 Em ployee 3.0% Be nefits Sec 7.5% urity A d15.0% ministration, Private Pension Plan Bulletin Historical Tables approximately 6.4 percent of salary for a 75 percent 15% pro17% b 15% ability of suc 15%cess. The rate 15% would need to be increased even 20% 15% 15% 6.5 percent to $65,0 12% tal contri 016% 0 bution rate each year until In essenc contributio e, th ns fis allows o ell from 14n pe e trcent o picki whi n 200 ch o 7 to f the 6 perc three co ent in ntributio 2013, an n rat d in ecsreased they ar 12% slightl e most likely to y to 8 percent cho in ose for t 2014 (Fig he fut uru e 6 re ). 14%14% 2 15 $ % 100 $50,0 ,000 00 15% 19% 11% 20% 14% 11% the 15% public. 18% publ Accounts, 2006–2014 ( private Fron ished sev stin insura 2002) e nral stu ce. Amon . In 20 d04 ies g th , they starte dealing wit e 15 perce h d th of nt o is fe, ri topic, ra f in np. 17 gdivi heduals alngi th n p g le an nanywher rolle s 14% with d in he e a alth fro CD m savings acco 10% HP, 5 “a simple 7 perc E en x ucel s t (or nts (HSAs) (Fr p 9. rea 3 mil dshleet e ion) onstin 2 had an xample” 00 HR 4). to A or By a 6 20% 14% $20,000 and Grap 30 h % s, Decembe 17% r 2014. 15% 14% 17% further Methodol (to approximately 14 percent ogy 13% ) for a 90 percent probability of success. 16% 16% VanDerhei (June 2014). retirement (age 65) for 9% just a 50 percent and t At the same time, the percentage contri henFemales: see 10 10 30% % % the mi Figure 4 provides 16% nimum existing accoun the bu pro ting t bala babi $1, nce t liti 500 es h or of ey more i not should alr runn ncreas ing short eady have a ed from of m 50 o ccum ney in percent to ulated at t retire 59 ment for p hat ercent i age. a fe n male a 2012, g and e 10% The $35,326 value in the first column for the $20,000 salary level sugge9% sts that this stylized individual would need to The Employee Benefit Research Institute (EBRI) was founded in 1978. Its mission is to Females: 15% Figure 10 provides the minimum account 15% balances required for adequate retirement income at 50, 8% 12% Female 25 $65,000 <3% 14% 5.0% 9.0% 201 had o full 4, stochastic decumu p27 ened a percn ent of HSA, em whil lation ploy e 4ers with model focusin 3 percent 10 w –4 e99 re g enro simulta workers a lled i neou nn a d 4 s nly on post HSA-eli 14% 8 percent o gibl -ret ef irement em health ployers pla invest 14% n wi bu th 5 m t had not ent risk, lo 00 or mor ope ne g n work evity risk, a ed an H ers of SA. fe n d red $40,000 7% 7% $50,013% 00 9% 10% 13% 13% 13% 13% 10% 12% contribute to, to encourage, and to enhanc 12% 12% probae the developmen bility of success and a t of sound empl 16.5 percent oyee ben total efit 40, as The fell to 54 primary a functi perce ob on of current n jectives of t in 2014. thi salary and future total s Notes article are to: contr ibution rates assuming that she ju 9% st started saving at age 40. 11% 6% 1 VanD have acc erhei, umul Jaated a ck. “Ret n3 acco ireme un nt Savin t ba 6% lance gs Sh of ortfalls: Evide at least this si nze ce by a from EBRI ge 40 t’s Retir o havee a ment 50 percent Security pro Projection Model,® bability of attainin”g EBRI 75 and 90 per 20cent % probability levels by total contribution rates and salary for a female age 55. The relative results are 7 EBRI explo 10% res the breadth of employee benefits and related issues. ® either long-t an H erm car RAe - costs. or HSA-e ligib 5% le plan. As a result, by 2014 these plans covered 26 million people representing about For a 25-year 5% -old mal 5% e earning as much as $65,000, a 3 percent contribution rate wo $65,000uld provide a 69 percent Van Who we are Derhei (February 201 20% 1). 10% programs and sound public policy through objective research and education. EBRI is the only The article begins with a brief description of A T RSPM, folA lowed by G L A N C the specific m E ethodology utilized in this analysis. $- 8% 105% % contribution rate to achieve a 75 percent Even with a total contribution rate of 23 percent each year until retirement age, a stylized employee currently earning 3% adequate Male Issue Brie retir40 e f, no $- ment . 41 $20,000 income 4. 0 5% (Employ by a 9. e16.0% g 0% e B e 6e 5ne , if fit 15 the future tota .0% Res >25% earch I 4.5% nstitute >25% l contribution , 9. Fe 0%bruary rate is 15 2 .0% 015). 4.5 per 4.5% cent. It may s 9.0% eem 15.0% The percenta 5%EBRI ge of workers studies the worl reportind g t of health and retirement ben hat their employers contributefit e to s the — issue account s such a decreased sligh s 401(k)s, tIRAs, retire ly in 2014, th ment e quite similar to those for a male age 55 in Figure 9, with the exception that each non-zero minimum account balance 5% 15 percent of the privately 4.5% insured market 9.0% private, nonprof 15 (Fronstin .0% 6% it, nonpar and Elmlin 4.5%tisan, Washington, DC-b 9.ger 0% 2014). 15.0% ased organi 4.5% zation com 9.0% mitted exclusivel 15.0% y to probability of success while a contribution rate of 4.2 percent would provide a 75 percent probability of success and Results are Length of 1. Determi pr Tim novided first e te h on the Plan e probabi for lity of the : T require ha “succ e lengdth e contributio ssful” of time retirement u wit n ra h th tes for t e accou nder h var n ose s t aip ous fut pears to hav tarting to save at a ure total e a contr ffecte gies bution d individual contr 25, rates 40, or for stylized 55. Th ibutio is isn s 5% 10% 50% 75% 90% probability of success. He would be unable to $20,000 wo 0%ul incom d hav ee only adeq a uacy, 50 perc consu ent m pr er-drive obability of n benefits, success. Socia l Security, tax treatment of both retirement and health 8 counterint 10 uitiv % e to have a larger m 50%inimum threshold for a 40-year 75% -old male currently earning $ 90% 20,000 than one is somewhat first such One of the in decr lh arger ease since 2009. Ho erent du problem e to a woman s withpublic wever, not ’s lon poli explicitly mo g among t er li cy r fe esex earch hpecta ose delin and with g t ncy. edu hemploy ese post-retirement risk cation on er contributions, economic securi overall s is that the a ty and em contri plo bution y lternative method is ee be levels for nefit issues. VanDerhei (August 2011). $20,000 $35,326 $14,619 $3,384 $107,118 $83,298 $72,793 $198,724 $190,887 $177,926 an 8.2 percent contribution rate would increase it to 90 percent. . “Contributory ’Negligence?’” The I HDHP or CDHP Offered mpact of Future Co Not Offered a C ntributions to Defined Contribu DHP or HDHP Don't Know if CDHP tion or HDH Plans P W on as Retiremen Offered t 0% among follow indivi ed by t those with employ 0% duals he analysis o with no previo fee-only the acco us coverage. savings at a unt balances re Whil gese those with 25, quir 40, ed an byd ages 40 an 55; a HSA nd and for le 55 for ss than tho th sree years cont e who have already ributed l bee en sa ss thving an Male $20,0 40 0 0 $1 $40,000 11,353 $101,6.5% 021 $87,116.5% 99 $2 30,430>25% $2 21,068 $208,661 $381,049 $376,281 $368,177 benefits, cost management, worker and employer attitude achieve a s, policy reform p 90 percent pro ropo babisals, lity of suc and p cess enseven ion assets EBRI’s membership includes a cross-section of pension funds; businesses; trade associations; How Much N 0% eeds to be Saved for Retirement After Factoring In Post-Retirement earning $40,0 $40,0 00; 00howev $12,9e 56 r, the latt $-er will have fut $- ure $60,9 con 37 tributions $47,493 equal to t $2,003 wice $1 the 51,629 value $1 of 06, the 819 former. Moreo $85,665 ver, This re indivi often just to duals port wit pr meet some esents fi h em Leployee ss th ndi an ge $20 ng -oneraliz 0s nly covera from th ed “r e 2 ge epl 0 i08– acement ncreased from 2014 E rate BRI”/G 23 of savin re percent enwal gs, d & Associates to wh 34 ere percent by a work Consumer iner’s project 2014. Worker Engagement in $1 e,00 d 0 or post-retir contributio More H eme en al s t n th t o 0% $200–$499 $500–$749 $750–$999 0% 0% 0% 5% 10% 15% 20% 25% 0% $40,000 $46,092 $34,964 $20,114 $189,099 $177,386 $162,608 $345,906 $327,809 $302,715 Income Adequacy for Gen Xers,” EBRI Notes, no. 8 (Employee Benefit Research Institute, August 2014): 10–26. Nothing Less than $500 $500–$999 $1,000–$1,499 $1,500 or More those wit for retir Under th ee ment. h same set o 0% an and HSA for t Th fundi e final fng. assu h secti ree There is wi mptions, a or more years in on summarizes the r de 40 spread -year-ol 2014, re d f e cog sults for both cont emal nition ribu e curr tion lev that if employee be ently analys e ear ls have ning $ es. been trending 40,0 n0 e0 fits and just starti data exist, EBRI kno down fon ® r those g to save with a wwo s it. uld n 9 Source: $65,00 EBR 0 I/Commonw $- ealth Fund C $- labor un onsumerism ions; h in H $-ealth C ealth are Su car $1 rv ,38 e prov ey7 , 2006 iders and insur ® and 2007; EBR $- I/Greenw ers; $-ald & government org Associates $46,3C 02 onsumer anizations; Engagemen $4,616 ti and service firms. n $- 0% 5% 10% 15% 20% 25% 2 No No thi thi nn gg Le Ls es s th s th an an $50 $50 00 $500–$999 $500–$999 with a 25 $1,000–$1,499 $1,000–$1,499 percent contributio $1$1 ,50 ,50 n 0 or rate. 0 or M M ore or If he were to e Nothing Less than $500 $500–$999 $1,000–$1,499 $1,500 or More Risk VanDerhei a s: Evidence from t nd Copeland (2011) and VanDe he EBRI Ret rhei (August 20 irement Securit Total Contr 12). ibution Rate y Projection Model, by Jack the definition $65,0 of retir 00 e $3ment 0,286 income a $7,172 dequacy used in $- $145, R 061 SPM is not $122,095 a simple r $81,912 eplace $272, m 769 ent rate $243, in 291 which $1 someon 96,662 e with Care S HSAs drop income is urvey com pe(CEHCS) a d slightly pared to in n prer 2 d t 0h e 1e t 4irement . Both 2006 a low inco nd 2 er- 007 m and e to EBRI hi determ ghe /Com r-in ine th monwealt come in e ratio divi h of Fu du nee nd Co als slightly de nsumeri d salary low s replaceme e m in Hea red their con lth C nt. are Su tUnfortunate ributions rvey. in It ly, this 2014, It is worth not H0% ealth C ing are Surv howey much , 2008–2014. the 5% curves in Figure 1 10% flatten out beyon15 d % a 10 percent total contri 20% bution rate, 25 espec % ially 2. Determi Source: ne t EBR he I/C minimum ommonwealth acc Fund Co onsumerism unt balanc in Health C es that wo are Survey, uld ne 2006 and 2007; EBR ed to be acc I/Greenwald & umulated for Associates Consumer a 50, Engagement 75, and 9 in Health 0 percent Male 40 $65,000 <3% 4.8% Total Contr 9.6% ibution Rate Summary a account have a 5for th 0 per Traditional = cent ree or proba more Health b plan w ilit years. Among t y of succ ith no deductible ess w or <$1,250 (indiv hiose wit th approx idual), <$2,500 (family h aimat n HSA for ely a ) in 9.5 less t 2014. perc han thr ent fueture e yea tota rs, 25 l contri perc bution ent contribut rate. But ed no evething n if CSource: are SurvEBR ey, 2008–2014. I/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBR def I/Ge reenw r his init ald & Associates ial savings Consumer until Engagemen age t in 55, he would be Total Contribution Rate Van D erhei . “, T Ph he .D., Impact o Employee f Lea Benefi kages t on Research 401(k) Accum Institute ulations at Retirement Age,” ERISA Advisory Council, U.S. twice the salar Source: b y of a EBRI/Cn ommonw other ealth wFund C ould r onsumerism equire t in H w ealth C ice the are Surv resou ey, 2006 rces in and 2007; EBR retirem I/Greenw ent ald & (before Associates fa Consumer ctoring Engagement in Soci in al Security examin and standard leav lower es the -inc es several ome in availabil dividual ity of questions unanswered: HRAs and HSA s were less likely to co -eligible ntribu plans, te anythi as well ng th as em ® an hi ployer a gher-i nd in ncodividual me individuals contribution . behavior. for the high aer HDHP = High-deduc salary levels. tible health For e plan xamp with deduc le, tible a 25 $1,250+ (indiv -year-ol idual), $2,500+ (fam d male earnin ily), not g $40, HSA-eligible in 000 wo 2014. uld increase his probability of Source: Employee Benefit Research Institute Retirement Security Projection M ® ® odel Version 2207. Source: H Health C ealth reimbursemen EBR are Surv I/Greenw ey, 2008–2014. ald & Associates t arrangement. Consumer Engagement in Health Care Survey ® , 2009–2014. chance of Source: Employ Source: Employ Source: a EBR “successful” reti I/G ee ee reenw Benefit R Benefit R ald & Associates esearch Instit esearch Instit rement ute C ute R onsumer Retirement Security etirement for sty Engagement Security lized i Projection in H Projection M ealth C ndivi Ma odel re Surv du odel ®al Version 2207. Version 2207. ey s at ages 40 a , 2010–2014 nd 55 under different assumptions with 10 EBRI delive Health C Source: Employ are Surv rs a stead ey ee , 2008–2014. Benefit Research Instit y stream of invaluable research and anal EBRI’s work advances knowledge and unders ute Retirement Security Projection Model Version 2207. tanding of emplo ysis. yee benefits and their Source: Employ c ee Benefit Research Institute Retirement Security Projection Model Version 2207. ® in 2 This the contr 0Notes 14, u ibutio p arti fr CDHP = Cons om 13 cle attem n rate percent w ume er-driv p re ts t en in in o creased to 1 health hel 20 plan p11 a w (Figu n ith deduc swer 9tible r . two o 5 e 7 percent, $1,250+ (indiv ). Similarly f the m the idual), o, pro st important th $2,500+ (fam e bperc ability of ilyenta ), with questions t ge co HRA, success woul HSA, ntrib or HSA-eligible utin hat many d be g $ in 120 only ,5 14. 00 def or m 75 ine pe d contribution ore was rcent. 25 p ercent b ® VanDerhei (June 2013). * H H ealth sav ealth See tex sav ings account. t ings for assumptions account. and caveats. See tex See tex * Health t tfor assumptions for assumptions savings account. and cav and cav eats. eats. unable to achieve a 50 percent success rate unless Departm * H eealth nt o sav f Labor. H ings account. earing on: Lifetime Participation In Plans, June 17, 2014. EBRI Retirement Security Projection Model * H See tex ealth sav t for assumptions ings account. and caveats. benefits). Whil See texe certa t for assumptions in com and cav ponents o eats. f the decumulation of RSPM are income-related, several of them (especially Female 40 $20,000 23.0% >25% >25% success by approximately 14 percent importance to age points th e nation’s econo (from 70 percent my to among policy 84 percent m)akers, by increasing the total contr the news media, and the public. It ibution ? respect to This an alysis h futEBRI u elps answer one of the most important question re contrpublications ibution rates. include in-depth coverage of key issues a s that many defined contribution participants face be nd trends; summaries of researchfore ipartici n 2014 pants deal with , down from 3 9 befor perce e n retir t ine 20 ment: 11. Simi larly, among individuals with an HSA for at least three years, the ® he made a total contribution rate of 24.5 percent ? What is the proper measure of the numerator? For example, how should one convert 401(k) and individual those dealing with long-term care does this b prior to qua y co lificat nducting ion for Me and p TM dicai ublishing policy re d) will be incom searech, analysis, -invariant. and special reports on One of the basic objectives of RSPM is to simulate the percentage of the population at risk of not having retirement rate from 11 5 to 10 percent. However, increasing the total contribution rate by another 5 percentage points (from 10 to What we do findings and policy developments; timely factsheets on hot topics; regular updates on legislative and For a 4 retirement: How much do I need to save ea . 0-year “Wha -old t Caus female es EBR ear Ining $ Retirement 65,000, R eadin a 3 ch year for a “s perc ess Ratin ent cognt sributio uccessful” retirement? It includes three of the major post- to Vary: Results n rate would from provide a the 201 614 Retir percent ement Securit probability of y CDHP Eligibility VanDerhei (August 2014). References percentage not contributing increased from 8 percent in 2011 to 21 percent in 2014 (Figure 8). The percentage of employee benefits issues; holding educational briefings for EBRI members, congressional and Female retireme nt acc 40 o$40,000 unt (IRA) bal 9.5% ances to r e19.5% tirement in come? >25% of salary each year. 19 regul® atory developments; comprehensive reference resources on benefit programs and workforce The analysis is income adequate to cove undertaken r a for singl verage ex e mal penses and un es and fema insu les red separately, health car giv ee costs (i n their nclu differ ding ential long-term longevit-y. Given th care costs) e at age 15 percent) will increase the success rate by about only 7 percentage points (from 84 percent to 91 percent). success, whil 1.Projection Mo How much retirement risks (longevity, investment, and e a contr do del, I ne ibutio ” ed to EBRI Is n rate o save sue Brief, each f 5.5 ye pe no. ar rcent for 396 long-term ca a “succ woul (Em d ppr loye essful” ovide a re e Be ) while allo retirement? nef 75it R per ewin cent search Institut g the participant to also choo probability of succ e, February ess and a 2014 se the ).n 11.4 per- federal agency staff, and the news media; and sponsoring public opinion surveys on employee According to the 2014 CEHCS, 15 percent of the population was enrolled in a CDHP, representing about 26 million individuals with an HSA for at least three years contributing $1,500 or more declined from 50 percent in 2011 to The second and third columns of the grid show the same results if the future 14 contri ® bution rates are increased to 9 and 12 issues; and major surveys of public attitudes. stylized exam Fronstin, 65 or older t Paul. hr ples use "Ca oughout n 'Co d retir n duri sumerism' Slo ng t ement in he ac spe cum w cthe ulation ific income Rate per ofi He an od,d alth B a age simple 4 percent (nomin e grou nefit Cost Increases?" pings. RSPM also al) wage growth EBRI Issue provides infor Brief was mation on the no.24 assumed 7 for A similar approach was used by the author for the March 2013 Money Magazine cover feature, “Dream Big, Act Now: Six benefit issues. EBRI’s Education and Research Fund (EBRI-ERF) performs the charitable, cent contr probability of “success” that is best suited for their circumstances. ibution rate would increase it to 90 percent. Female 40 $65,000 <3% 5.5% 11.4% The answer to the question of how large account 37 perc indivi ? What duals ent in 201 is th with pr e pr 4. ivate i oper m nsur easure ance. Amon of the denomi g the 15 nator? Sho percent of in uld divi it focus o duals enrolle nly on the d in a last CD few HP, 5 years of 7 perce inco nt (or me, shoul 9.3 mild lio it n) 15 percent respectively. EBRI In both meetings of present an these cases, d explore i all of thsesues stylize with d inthou dividual ght s ar leade e si rs mulated from all se to have ctors. sufficient funds for . “What a Sustained Low-yield Rate Environment Means for Retirement Income Adequacy: Results From the Females: Figure 2 provides the probabilities of not running short of money in retirement for a female age 25 (Employee Benefit Research Institute, educationa July l, and 20 scientif 02). ic functions of the Institute. EBRI-ERF is a tax-exempt organization all a distributio 2.g How lar es an nd on g f o e the lik prer do I ne etirem ely n ed my uent cashouts, h mb acc er oo f years before those at unt balanc ardship wit e to be aft hdreawals r savi risk wi ng or ll r loan for sever un s defa hort of al ults w years to be money ere inclu , as we “o de n-track” for d. ll as The the percenta rates of r a successful eturn ge of used Secrets of Retirement.” Figure 12 Figure 6 Figure 10 Figure 2 Figure 6 Figure 8 Figure 4 Figure 2 Figure 10 Figure 4 ® had abe a n HRA care orer-av had opene erage,d or shou an HSA, ld it whil be similar e 43 percent to the w Figure 8 AIME ere enro (average lled i balanc n a in ndex HSA-eli es ne ed mo ed to be a gibl nthly e health ea fter rnings pla saving n ) calc bufor sever t had not ulation use al years ope dn to ed EBRI regularly provides congressional testimony, and briefs policymakers, member organizations, a succ ? 201 Given the ass essfu 3 EB l RI R retirement eu timptions used in this rement age Secu at least rity Projection supported b 50 Notes percent y article, a single male age 25 ear coModel. ntributions of the time even ” EBRI N and grants. otes, if they no. 6 (Employee Ben are just ning star $40,000 ting their with no previous savings efit Research contributions at Institute, age would Ju 40, ne as a function of current salary and future total contribution rates for the same t a hree salary levels. b A stylized female Annual Individual Contributions to an HSA,* Among preretir in th Overall, th e ana retirement given my ement le ysis are pr obabil compensation ge ities o nerate futur f s d u they w from ccess for e contributio A stocha n ill nnee ua f al Indiv stic annua d e male cur n in terms o rate? idual Contributions l ret rentl f au d yrns wit ditional earning h savings in or a $ lo 20,0 g-norma to 00 an und HSA lder to distri er t,hes * bution have a e assumptions an 50, d a 75, geometric m or 90 is 4 p percent ercenta ean of ge Probability Probability Probability of Not of Not of Not Percentage AMinimum A n Minimum A nuA al Employ Running Running Running nnual Indiv of Indiv cco cco Short of Money Short of Money Short of Money er Contributions un un idual Contributions i t t duals Balance Balance With Employ Required Required in Retirement in Retirement in Retirement to an to HRA er for for an Contribution A Ad HSA d or HSA eq for a for a eq for a uat uat ,* Female Female e Female e, A age 25, Ag ge e 55, 40, Male 55 $20,000 >25% >25% >25% Income Differences: A n Gen nue al Indiv rally, low idual Contributions er-income people with to an an HSA ar HSA,e l * A ess likely to mong People make contri With butions to the and the media on employer benefits. to be “on-track” for a successful retirement are an HSA. compute Socia l Security benefits? 13 except for those in the lowest-salary category. For males age 40 currently earni 16 ng $20,000, the minimum account 201 need a total contribution rate (employ .3): "He 2–alth Savi 12. ngs Accounts anad O ee and employer com ther Accou b nt-Based H bined) of less than 3 ealth Plans." EBRI I percent ssue Brie per year until retirement (age f no. 273 (Employee employee at this age currently earni People With Employ Amon ng g $20,000 People With Family would n ee- eed Onl to hav y Cov or Family ee a rage, total contribution rate of approximately Cov 2006–2014 erage 9.6 per- A future publication wil as as a a l pro Function Function vide sensitivit of of Current Salary Current Salary y analysis aroun d both of these factors. and Future and Future Total Contribution Total Contribution Rates Rates as a Function Am to HRA Retirement A Retirement om ng People ong of or HSA Current Salary People With Family Income at 50, 75, Income at 50, 75, With , AEmploy mon g and Future People With Employ ee- Cov O and 90% and 90% nle yrage, or Total Contribution Family Probability Probability 2006–2014 Cov men e,rage t,- Rates proba 6.5 points lo perc bility o ent r wer (given fe ral retur etirement a n woma for st inco n’s incr ocks and me adequacy. eased l 2.3 ipercent real r fe expectancy e) th turn an for a male bonds. at a Net 3 percent returns contribution are computed rate an by subtract d 11 per- ing Employee-Only Coverage and an HSA for Three or More Years, 2010–2014 account than higE he BrR -in I issu come p es e pre opss le. S rele even aste es e n pe on ne rcwsworthy ent of peop developm le in housents, eholds and i with s l a ess th mong anthe mo $50,000 st in widely qu incomeoted did provided in Figures 7 through 10 for a variety of EBRI Issue Briefs are periodicals providing exp c ert evaluations of employee benefit issues and and At Least Some Health 17 Engagement, 2009–2014 balances re Bene 65)80 for a 50 pe fit %qu Resear ired would ch Institut rcent chance of be $14,619 e, Septem success. A 6.4 percent contri if fu ber ture 20 to 04ta ).l contributions are bution rate would achieve a 75 percent success rate and equal to 9 percent of salary but only a The answers to the first queby s by tion obviou and Household T To o Based tal tal Contribution Rates Contribution Rates slHealth Benefits and y will (see (see depend Income text for assumptions) text for assumptions) on w $50,000 or and and hat CDHP proba Salary Salary More, 2006–2014 b ,ility o : : 2006–2014 Female Female f succA ess is desir Ag ge e 40 55 ed at any particular cent of Male salary 55 each ye $40,000 ar until retir 24.5% ement (age >25% (see 65) for a text for assumptions) 5>25% 0 percent probability of success. At this salary level, even if 70% 78 centage basis p 60 points o %ints from the lower at a g15 ross returns. percent contr Asset allocation is assumed ibution rate. The gender-rel to ated be a dif function ference at a of age a $65, nd is 000 salary is drawn from 6 pe the r- sources on employee benefits by all media. . “Is Working to Age 70 Really the Answer for Retirement Income Adequacy?” EBRI Notes, no. 8 (Employee It was ? What foun is the d that a si proper m gnifica easure nt percenta of the thr ge of work eshold? Oft ers wit en t h h tres ad e thresho itional hela ds a lth re computed t benefits were e o adjust for ligible for CD differ HPs. Amon entials in g not contribute to the HSA 14 in 2014trends, as well (Figure 9), compare as critical analy d with ses of 12 pemplo ercent of yee benefit po people w licies an ith $50, d proposals. 000 or more i EBRI Notes n household is a 60% future contribution rates. Figure 7 provides the Our For a brief c 100% hronology of the EBRI Retirement Security Projection Model,® see the appendix of VanDe 73%rhei (February $3,384 if70 th 70% % $ $ 10 e 300 450 0% y ,000 ,000 are equal to 15 percent of compensation. 18 combination VanD14 percent contribution rate would achi erhei 80 an % od Co f age, pelan gen dd (2 er,010 and salary, as ) describe how eve a illustrate househol 90 percent suc d in t ds are he followi tracke cess rate. But if a male ear ng t d throu able summariz gh retirement a ing nin Fig $40,000 were to wait until gures ge and 1 thow th hrough eir 6: this individual would contribute at a rate of 20.5 percent of salary each year until retirement, she would reach only a EBRI CHECK OUT EBRI’S WEBSITE! directs members and other constituencies to the information they need and undertakes new average alloca centage pointstions for mor at the 3 perc eent contr thanmonthly 24 mill ibutio period ion n 401(k) parti leve ical providing current informati l but decrea cipants at ses to yea 1 percenta r-endon on a variety of employ 2013. ge poi nt at the 15 percent ee be contri nefit topics. bution Benefit Research Institut 50% Proe, bability August 201 of Retirement 2) : 10–21. 75% Probability of Retirement 90% Probability of 70% Retirement Income income indivitaxes pr duals who wit di e- an h traditional, d not d post-ret contribu eirement, as well te (Fi mployment gure 1-ba 0). For s as ed h the age- an ealth low be e d rnefits -work income a -relate n gro d a c d up h ex oice o , the pens perc fes. However, healt enta h pl ge co ans, 35 it is ntribpercent extrem uting55% $el 1were el ,5 y dif 00 or m ficu iglt, if ibl ore e 75% Probability of Retirement 90% Probability of Retirement Fronstin, Paul, and Anne50% Elm Prolinge babilityr. of"Fi Retirement nding s from the 2014 EBRI/Greenwald & Associates Consumer Engagement in minimum account balances that a 54% 40-year-old Male 55 $65,000 12.9% >25% >25% 2015). 70% 2010 2011 2012 2013 2014 age 40 to begin saving, he would need a 6.5 percent total contribution rate for just a 50 percent chance of success and retirement income/w resea ealth rch is simulate on an ongoi d ng for ba the fo sis.llowing components: Adequacy, by Contribution Rate 75 percent probability of success. IncomeAdequacy, EBRIef 71% byis a weekly roundup of Income EBRI resear Adequacy, by ch and insights, as well as updates on survey 53% s, IncomeAdequacy, by rate. publications 20 20 06 06 20 20 07 07 20 20 08 08 20 20 09 09Income 20 20 10 10Adequacy, 20 20 11 11 by 20 20 12 12 20 20 13 13 20 20 14 14 59% 90 $ % 400,000 IncomeAdequacy, by 50% 64% for an not impossible HRA or 60%90% an HSA-based pla , to have anyn i meanin 69% n 2014 gfu (Fi l m gur oe 1). dificat Th ions fo e percenta r risk aversion ge of indivi . duals reporting that they were eligible fell between 2012 and 2013 from 29 percent to 22 percent, and remained at 21 percent in 2014. A 50% mong the higher- 60% If a 40-year Health Ca 70%-olre d mal Survey." e desires EBCo RI I a 75 ntribut ssue Brie io perc n Rate ent f, no success rate i . 407 ®(Employ nstea Coent e Be d, t ributh io nef e r nmale Rate it R esults in col ewoul search Institut d ne ued to mns 4 t have e, Dec hrough a s ember uccessful r 6 of 2 Figur 014). ee tir 7 eprovide ment 2006 2007 2008 2009 2010 2011 2012 2013 2014 63% 57% . “The Importance 67% of Define studies, litig d Ben 67% efit Pl atioans for n, legislation an Retirement Contd regulati ributio Inc n Rate o on aff me Adequac ecting emplo y.” y EBRI N ee benefit plans, w Co49% ntribut otes, ion no. 8 Rate h (Em ile EBRI’s ployee 50% EBRI maintains an Contributiond Rate analyzes the most comprehensive database of 401(k)-type 50% programs in the Unlike th a 16.5 percent e full accumulation total contributi module 66%on rate for a 75 percent chan used in RSPM, these stylize ce of success; a 90 percent pr d examples assume no def obability of success would be ined benefit accruals, no 60 60% % $250,000 49% 65% 2009 2010 2011 2012 2013 2014 15 50% 48% 2006 64% 2007 2008 2009 2010 2011 2012 2013 2014 54% 54% income for a Female CDHP grou or p,55 the HDHP has Cu perc rre$20,000 nt S enta a fall l63% ary g en sinc e contri >25% e buti 201 ng 2, but $1,5 >25% this may 00 or mor >25% be e als due o to a fell b n i etncreas ween 2 e i 0n t 12 a hen perc d 20enta 14 but ge wa reporting s 51 perc 59% that ent th in ey This EBRI’s website is easy to use and packe version of the model is constructed to simulate retireme Blog supplements our regular pub d with useful information! Look for nt income adequacy, as note lications, offering commentary d above. Alternative versions of on questions received from 53% the relevant results. In this case, with a 4.5 percent contribution rate, someone earning $65,000 would need to have ? Social S 60% ecurity worl 62% . d. Its computer simulation analyses on Social under Secu various rity reform combinations and retireme of salary a nt 55% income a nd future dequacy Under the same set o $350,000 f assumptions, a 25-year-old female currently earning $40,000 would have a 50 percent Benefit Resear 80% ch Institute, August 2011): 7–20. 54% impossible even with a 25 pe 80% rcent contribution rate. Age 55 individual -account savings other than that provided by the simulated defined contribution plan51% (e.g., no non-rollover Since very few households annuitize all (or even most) of their individual accounts in retirement, a replacement 53% -rate 50% news reporters, policymakers, and others. The EBRI Databook on Employee Benefits is a did not kn 60 ow % if they we $20,0 re e 00ligible. 2014. the model allow similar analysis for replacement rates, stan are unique. dard-of-living calculations, and other ad hoc thresholds. already accum 50% ulated $1,387, whereas a 40-year-old male earning $total contri 40,000 woul buti d on rates. As need a minimum expect balanc ed, for e of 51% an y given these special features: 41% probability of success with just a 3 percent future total contribution rate, but would need to increase it to 4 52% Endnotes IRAs), an Males: d no use of Figure any 5 provides th net housin e pro g eqb uit abilities y to finance of not re runn tirement ing short of expenditur mones. ey in retirement for a male age 55, as a 48% 51% statistical reference work on employee benefit programs and work force-related issues. focus wo Female 50 50 uld o % % $300v55 ,000 erlook the $40,000 potential >25% longevi ty risk of o >25% utliv>25% ing on e’s savings. Also, one of the biggest obstacles to . “A $ Po 200,000 st-Crisis Assessment of Retirement Income Adequacy for Baby Boomers and Gen Xers.” EBRI Issue 70% ? The analysis also shows how large a participant’s current account balance needs to be, by contribution rate, to be “on- ? DC balanc 70% es. 50 40% % $40,000 $60,937 and one earning only $20,000 would need to have already accumulated slightly more than five times their level of salary, any non-zero minimum account approximately 7.5 percent of salary for a 75 percent probability of success. The rate would need to be increased to 1 40% 37% function of cur 16 rent salary and future total contribution rates for three different current salary levels: $20,000, $40,000 See http://www.mercer.com/content/mercer/global/all/en/newsroom/modest-health-benefit-cost-growth-continues-as- retireme Health-En • EBRI’s entire library of re nt inc 50%ga ome adequacy gement Differe for nces: househol Thsearch publications starts at ere is ds who m a correlation ight o tbetw herween ise have hea the m l tsuffici h enga aent in W gement fina eb page. Click on ncial r and in esource dividual s at retir contributions EBRI ement age to See Finke, P Brief, no. f35 au and 4 (Employe Blanche e B tt (2013). enefit Research Institute, February 2011). track” for a particular level of retirement success. EBRI makes information freely available to all. $65,000 current salary $250,000 ($107,118). Increasing the future contribution rate to balanc 9 perce es re nt re qui duc red ewill s the decrea minimu se as the m account futu bal re total ances For purposes of the first objective (determining the probability of success associated with various contribution rates 15 perc Employer Contribu ent for 60% a 90 percent proba tions bility of success. Female 55 $65,000 18.5% Contact EBRI >25% Publications, (2 >25% 5 02) 659-0670; fax publication orders to (202) 775-6312. and $65,00 40%0. Again, it is assumed that the 55-year-old has no previous savings. Even with a total contribution rate of 60% consumerism-kicks-into-high-gear.html is the r ? IRA ba isk of lances. long-t erm care costs for a prolonged period. In the real world, few retirees have long-term care an HSA. Issue Briefs Thos EBRI e defi assume ned as and being en s EBRI Notes a publiga c service re ged for our in-depth and in their spo health nsibility reported that to make nonpartisan pe its finding they did at lea s co riodicals. mpletely st one ofacce the following: ssible at www.ebri.org 40% 40% $150,000 40% 36% 37% needed to zero at the $65,000 salary level, $47,493 at the $40,000 salary level, and $83,298 at the $20,000 salary for those . “M wit ea h suring no previous sa Retireme vings at nt Incom Subscriptions to ages e A d25, equacy: Cal 40 EBRI and 5 Issue Bri c5ulatin ), sixeg di fs R ff are included eerent alisti contributio c Income total contr as part of n ra Re te incr ibu pltion rates EBRI acement eases, but wi membership, or as part of Rate are s.” simulated ran ll i EBRI Issue ncrease as th ging a e 17 Two out of 3 workers (67 percent) with an HRA or HSA reported that their employers contributed to the account in 25 percent 40% each year until retirement age, a stylized employee currently earning $20,000 would have only a 16 per- A 201 Orders/ 1 stud $200 y by Delo ,000 itte Consulting and the Investment Company Institute found that the median participant-weighted — so that all decisions that relate to employee benefits, whether made in Congress or board rooms or insurance policies that would cover the potentially catastrophic financial impact of this exposure. Consequently, any 30 50 % % $199 annual subscription to EBRI Notes and EBRI Issue Briefs. Change of Address: EBRI, For a 25-year 30% -old female earning as much as $65,000, a 3 percent contribution rate would provide a 66 percent 2 50% 34% desire level. Furth d proba er i bn ility o creasing th f success increases. e future contriFi bution rat gure 8 provi e tod 1 e5 s percent similar ana reduces the lysis for a mini 40-ye mum account ar-old female. balanc Figure es ne 9 provi eded des Employer and Worker Contributions to from 3 percent to 25 Brief, no. 297 (Employe percent. e Be nefit Research Institute,Health Re September 2006 imbursement Arran ). gements and More information about the surveys can be found in (Fronstin and Elmlinger 2014). cent 201 ? ? 4 proba DB a Checked whet (Figur nnuiti be ilit families’ 2). y of succ es a Thher my e nd/or ho perce ess. m lum ehealt ntage s, p-su are h of plan m distri based work wou ers with on the highe bution ld cos. ver my car 32% an Hst RA or qualit 32% e or 32% HS medi y, A-most depe elig cation. ible he anda lth pla ble ninformatio whose em n. ploye EBRI’s Web rs contribute site d to posts fee for 401(k) plans—including • Visit EBRI’s blog. administrative, record-keeping, investment, and other expenses—was 78 basis points. 31% attempt to 30 inc % orporate this into a r 1100 13th St. NW, Suite 878, Washington, eplacement rate threshold (and many d DC, 20005-4051, (202) 659-0670; fax number, on’t) needs to be carefully assessed against 30% 30% 30% 30% probability o 30% $150 f success whil ,000 e a contribution rate of 5 percent would provide a 75 percent probability of success and a even mor Subscriptions e $ to 100$2,0 ,000 03 at the $40,000 salary level and $72,793 at the $20,000 salary level. the min Health Savings Accounts, 2006–2014, imum account balances that a 55-year-old maleby Paul Fronst would need to in have , Ph.D a succ ., Emple oye ssful retir e Benefit R eme ent un search der Institut varioeu, s and 30 40% % all research findings, publications, and news alerts. 27% EBRI also extends its education and public service the account had steadily increased since 2009 and reached its highest level of 71 percent in 2013 since the inception (202) 775-6312; e-mail: subscriptions@ebri.org Membership Information: Inquiries 40% VanDerhei, Jack, and Craig Copeland. “The Impact of Deferring Retirement Age on Retirement Income Adequacy.” actual implications. 25% Current Salary 21% For purposes of the second objective (determining minimum account balances at ages 40 and 55), three different 9 percent 18 contribution rate would inc rease it to 90 percent. 20% combinations ? Net housin role of salary a g to improving Ameri equity.n d future tota can l co s’ ntributio financial n rat knowle es. Fidge gure thro 10 pr ugh ovides similar its award-win anal ning ysis pfor a 55-y ublic service ear-ol cam d female. paign Anne Elmlinger, Greenwald & Associates Und ? eChecked r the same set of assump the price of a docto tions, a regarding r’s visit, me 55-year-ol EBRI dic membership an ation, or d male currently other d/or con healt earn ht car ributio ing e$4 sns e0,00 to EBRI-ER rvice 0 a before I nd just startin F should be dir received care. g to save wo ected to EBRI uld See • Va EBRI’s reliable health and retirem nDerhei, Holden, Alonso, Bass and Pino (2014). ent surveys are just a click away through the topic boxes at of the survey. 20% $100,000 It fell to 67 percent in 2014. 20% Current Salary 18% $20,000 EBRI Issue Brief, no. 35®8 (Employee Benefit Research Institute, June 2011). 20% 19% 30% 17% For a 40-year-old male desiri 17% ng a 90 percent chance of success, colum 17% ns 7 through 9 of the grid in Figure 7 show that total contri 20 20% buti % on rates ar 16% e simulated: President Dallas 4.5 percent, 9 per Salisbury at th cent, and e above 15 perc address, ( ent. 202) 659-0670; For each of the 48 e-mail: salisbur combinations y@ebri.org of 20%ChoosetoSave and the companion site www.choo 16% setosave.org 18% 30% 18% have only 20 a % 50 percent probability of success even if th 16% e contribution rate were 24.5 percent. 16% 16% For a 55-year-old male $50,000 the top of the page. 16% The EBRI Retirement Security Projection Model® (RSPM®), which is detail 16%ed in 16% the 16% next section, $ uses a f 40,000 ull stochastic 14% $20,000 16% 16% 15% 15% 13% ? This report presents findings from the 2014 14% EBRI/Greenwa 14% ld & Associates Consumer Engagement in Health Care 19 15% 12% 11% 15% 14% Overall, the probabil 15% 14% 15% ities of success for a female cur TMrently earning $20,000 13% 14%und 15%15% er these assumptions is 8 percentage even a 9 percent future con 14% tribution rate would require current balances for all three salary levels, whereas a 15 per- A househol salary, ge ? Checked th nder d $50,0 is conside , age 0e 0 quality rati and co red to ntribution run ng of a short of 11% lev doctor or els money in mentione hospital this d, befor 25 mo di del e ffer I received car ife aggre nt initia gate r l account ee from source ba 13% them. s in ret lances are ireme simul nt are ated r not suf anging ficient This may have implications for the debate over whether 11% a 10 percent or a 15 percent t 13% otal contribution rate is the . “The EBRI R 13% etirement Readiness Rating: Retirement Income Preparation 13% and Future Prospects.” EBRI Among workers with an employer contribution, those with employee 10% -only coverage saw their annual employer earning $65,000, a 12% 12.9 percent contribution rate would 10% provide a 50 percent 12% probability of success. 20% 13% 12% 12% 12% 9% $65,000 12% 9% 12% $40,000 9%9% 9% simulation procedure for 12% both the pr 8% eretirement and post-retirement periods to determine the percentage of times Editorial Board: Dallas L. Salisbury, publisher; Stephen Blakely 8% ,11% 11% editor. Any 9% views expressed in this p 8% ublication and those of the authors should 10% 11% 11% 11%11%11% 11% 8% Survey (CEHCS), as well as earlier surv 20% eys, examining the a 11% vailability of heal 7% th reimbursement arrangements (HRAs) points lower 10% (given 10% their increased life expectancies 7% ) tha 10% n a male at a 3 percent cont 7%ribution rate, and 7 percentage 10% 10% 10% to meet cent contr EBRI is sup avera ibutig 6% on rate wou e re ported b tirem 10% ent ld expenditures, y be su organizations from all industries and sectors that appreciate the value of ffic6% ient for those defined as a earni co nmbination g 6%$65,000 of even i determi f they f nistic e irst be xpe gin nses from saving at age the Consum 40. er from zero to $1.5 mi 9% llion. 9% Fo 9% r each of the re 9% sulting 1, 9% 200 scenarios, the accumulated balance at age 65 is simulated “correct” • Need a number? level for specific situ 9% 9% Check out the ations. In this stylized example, 5%9%EBR 9% I Databook on Employee Benefits. a 50 percent increase in the 9% 9% 9% 9% 9% total contributi ng rate from 10 to Issue Brie 10% f, no. 344 (Employee B 9% enefit Research Institute 9%, July 9% 2010). contributio not be ascribed to the officers, 10% ns increase betwe trust en 8% 200 ees, 6 a m 9% end m 8% bers, or 2 8%008,other sponsors of the E an 5% d subsequently m fall ploye 8% in 2 e Benefit Research 009 and 2011. Institute, the EBRI Educ Betw 5% een 2006 and ation and 2008, the 10 10% % 8% 8% 8% 8% 4% 8%8% 10% $- 8% 8% 8% 8% $65,000 households are simulate $- 3% d to not run short 7% of money in retirement 7% (i. 7%e., a “successful” 4% retireme 4% nt). 4% Whil 4%e this is 3%3% 7% 7% 7% 7% 2% 3% 7% 3% 3% 3% 3% and health-savings- 2% account (HSA)- 2% eligible 6% plan 6% s (consumer-driven health plans, or CDHPs). It also looks at employer ? Talked to my doctor a 4.5% b 6% out 2% 9. prescript 0% 6%ion o 15.0% 6%ptions and cos 4.5% ts. 9.0% 15.0% 4.5% 9.0% 15.0% points lower 10% at a 15 perc 4.5% ent contribution 9.0% 5% r15 ate. .0% The gen 4.5%der-relate 9.0%d differenc 15.0%e at a $ 4.40,0 5% 00 salary 9.0% is still 8 15.0% percentage unbiased, reliable information on emplo 1% 5%5% yee benefits. Visit www.ebri.org/about/join/ for more. Expen Females: 100 times to Resear ditur ch Fund, Figure 6 provides e S ru ervey (as a flect or their the pr staffs. fu e-retirement inv Nothin nction o the g her profb e a in is to be co abi ge liti and estment risk. es of income nstr not 5%ued as an attem ru ) a nn At ning short d some that point, 100 pt to aid or hea of m lth hi o insura nder ney in alter the adoption n retir nce ativ aen e ment for d o liof a fe-paths ar unt-of y pending le -poc a feket, healt male a e simulate gislation, ge r 55, he d using -r gulation, el as a ated 15 percent would provide only an 8.3 percent increase in the success rate. Obviously, these results and any similar 6 percentage reporting that their employers contributed $1,000 or more to the account increased from 26 percent to 10% 50% 75% 90% extremely use 0% ful (and realistic) for 50%public policy modeling of the 75impact % of preretirement leakages, 90% considering the VanDerhei, 0% Jack, Sarah Holden, Luis Alonso, Steven Bass and AnnMarie Pino. “401(k) Plan Asset Allocation, Account or interpretative Females: ru le, or as Figure legal, 8 provides accounting, the actuarial, o minimum r other such prof ® account balan essional advice. ces required for adequate retirement income at 50, and individual contribution behavior. points at the 3 percent contribution level but decreases to 1 percentage point at the 15-percent contribution rate. • Instantly get e-mail noti?cations of the latest EBRI data, surveys, publications, and meetings expenses, plus stochastic expenses from nursing-home and home-health care (at least until the point such expenses function of cur the full stocha $20,0 stic dec rent salary 00 umulat and future to ion portion o tal f contributio RSPM. This n ra provides 1 tes for the sa 0,00me thre 0 different e salar simyulations levels assum for eaing t ch of h the ere are 1,20 no 0 cost/benefit analysis would vary LeE ss mpl th $1 oy an 42, er $20 875 Co 0ntribute for each styl $1s t 35, o A 720 ccou $200–$499 nt $125, ized example. 430 $2N 73, o Em 265pl $500–$749 oyer$2 Con 65,tr 875 ibutions $255,557$750–$999 $397,835 Do$3 n't K 92,now 968 $1,000 or $3 M 87, or191 e $20,000 $46,461 $37,354 $13,562 $136,280 $120,291 $93,489 7 $240,272 $201,817 $189,520 37 percent (Figure 3). It fell to 32 percent in 2009 and to 24 percent in 2011. More recently, the past few years have 0% 0% combine ? Talked to my d impacts of th doctor a e reb ce out nt crisis other treatment optio in the financial an ns and costs. d real estate markets, the impact of participating in a defined 0% Balances, 0% and Loan Activity in 2013.” EBRI Issue Brief, no. 408, (Employee Benefit Research Institute, Decem ® ber 75 and 90 percent probability levels by total contribution rates and salary for a female age 40. The relative results are $ 0% 40,000 $97,587 $83,894 $61,124 $227,929 $205,567 $188,864 $372,224 $359,481 $336,549 $40,000 $31,558 $- $- $84,656 $56,383 $22,428 $163,359 $126,504 $87,313 and sem 0% 0% 0% inars by clicking on the “Notify Me” or 5% 10% “RSS” buttons at the t 15% 20op of our hom % e page. 25% are cover combinations. previous savin ed by Medic In gs. Even eac No h aid). It thi case, with ng the percentage should be not a total co Lntribution rat ess than ed t $50 of h 0simulations where the at e of the definit 25 $500–$999 percent ion o eac f retst h irement year ylized individual $1,000–$1,499 until incom retirement e adequacy us does age, not $1 r ,50 un short o a stylized em ed 0 or M in orRSPM e f mployee is oney not ? The percentag 0% 8e of workers reporting that Nothing 5% Less than $50 their employers contribute to the acco 0 10% 9 $500–$999 15% $1,000–$1,499 unt decreased in 2014 20% $1,500 or Morfeor the first time 25% 10 shown no EBRI No clea tes is r tren registerd. In ed in the U. 2012, t S. Patent and T he percen rade tage o mark Office. f worker ISSN: s reportin 1085 ?445 g t 2 1085 hat their ?4452/9 em 0 $ . ploy 50+. ers contribut 50 ed $1,000 or more 0% 5% 10% 15% 20% 25% $65,000 No $5 thi4,6 ng87 $36,2 20Less th$1 an 0,4 $50 67 0 $174,750 $153,230 $117,539 $298,084 $276, $1 594 ,500 or M $2or 42, e 023 benefit (DB) $plan, 65,000 the valu Nothi$- ng e of defer $- L rin essg re than $- tirement $500 age, $6,588 $500–$999 $500–$999 the im $-pact of the cur $-$1,000–$1,499 $1,000–$1,499 rent $6 lo 9,161 w-interest-rat $8,76 $1 1,500 or e envi Mor $- eronment, 2014); an Source: d IC EBR I Researc I/Commonwealth h P Fund C erspective , onsumerism in H Vol. ealth C 20, are Su no. rv Total Contr ey, 10 2006 (D and 2007; EBR ibution ecemb Rate eI/G r 201 reenw4 ald & ). Associates Consumer Engagementin quite similar to those for a male age 40 in Figure 7, with the exception that each non-zero minimum account balance Total Contribution Rate a simple repla Source: cement r EBRI/Commonw ate ealth in whi Fund C ch someo onsumerism in H ne ealth C with are twic Survey e , 2006 the salary o and 2007; EBRfI/G areenw nother ald & Associates would C requir onsumer e t Engagement wice t in he resour Health ces in in reti currently rement earn iisn compute g $20,00d 0 w and i ould have nterpolatio only n metho a 10 perc ds are ent proba Total Contr used to ibution bility deter Rate of success. mine the i nitial account balance that would be Health Care Survey, 2008 -2014. since 2009. Among individuals with individual coverage and employer contributions, the percentage with contributions increase ? Used an d from onli 24n p e cos ercent t trackin to 28g p tool ercent, provide fell to d by my h 23 percent i ealth n 2 plan 013 to mana , and increase ge my h d t eo alth 34 e px epe rcent nses in 2 . 014. C a are Survey, 2008–2014. Source: Health reimbursemen EBRI/Commonw t arrangement. ealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/Greenwald & Associates Consumer Engagement in Health Source: EBRI/Commonwealth Fund Consumerism in Health Care Survey, 2006 and 2007; EBRI/Greenwald & Associates Consumer Engagement in ® is somewhat larger due to a woman’s longer life expectancy. a ® ® ® Source: Employ Source: Employ b Health reimbursemen ee ee Benefit R Benefit R t arrangement. esearch Instit esearch Institute R ute Retirement etirement Security Security Projection M Projection Model odel Version 2207. Version 2207. ® requir retireme ed such nt Source: Employ (be C Source: are Surv that a fore EBR eyfactorin , I/G 2008–2014. ee “succes reenw Benefit R ald & Associates g esearch Instit s in Socia ful” retirem C ute l onsumer SR e etirement Security cur e nt wou Engagement ity beThere’s lo nef ld resul in H Projection M its). ealth C tWhil 50, are Surv odel ®ts more! 75, an e c ey Version 2207. , e 2010-2014. rtain d 90 components o percent of the tim f the decumu e. lation of RSPM are Source: Employ Source: HH ealth C ealth sav Employee are Surv ings account. ee Benefit R ey Benefit , 2008–2014. esearch Instit Research Institute ute Retirement Security Retirement Security Projection M Projection th odel Model Version 2207. Version 2207. between $200– Source: EBRI/G $999 decrease reenwald & Associates d while contrib Consumer Engagement utions of $1,000 or more incre in Health Care Survey, 2009–2014. ased in 2014. b 1100 13 Street NW · Suite 878 See tex See tex c Health sav tt for assumptions for assumptions ings account. and cav and caveats. eats. See tex ** H CDHP = Cons Health ealth t for assumptions sav savings ings um account. account. er-driv and cav en health eats. plan with deductible $1,250+ (individual), $2,500+ (family), with HRA, HSA, or HSA-eligible in 2014. See tex See tex ** H Health ealth tt for assumptions for assumptions sav savings ings account. account. and cav and caveats. eats. Washington, DC 20005 © 2015, Employee Benefit Research Institute ?Education and Research Fund. All rights reserved. ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org ebri.org No No No No No No No No No No No No Nottttttttttttte e e e e e e e e e e e es s s s ss s s s s s s s • March 2015 • V • March 2015 • V • March 2015 • V • March 2015 • V • March 2015 • V • March 2015 • V • March 2015 • V • March 2015 • V • March 2015 • V • March 2015 • V • March 2015 • V • March 2015 • V • March 2015 • Vo o o o o o o o o o o o ol. 36, No. 3 l. 36, No. 3 l. 36, No. 3 l. 36, No. 3 l. 36, No. 3 l. 36, No. 3 l. 36, No. 3 l. 36, No. 3 l. 36, No. 3 l. 36, No. 3 l. 36, No. 3 l. 36, No. 3 l. 36, No. 3 Visit EBRI online today: www.ebri.org 15 19 17 12 10 16 22 11 4 5 7 2 3 ? Workers’ contributions to their HSAs decreased slightly in 2014. (202) 659-0670 www.ebri.org www.choosetosave.org A monthl y newsletter from the EBRI Education and Research Fund © 2015 Employee Benefit Research Institute ebri.org Notes • March 2015 • Vol. 36, No. 3 ebri.org Notes • March 2015 • Vol. 36, No. 3 ebri.org Notes • March 2015 • Vol. 36, No. 3 ebri.org Notes • March 2015 • Vol. 36, No. 3 ebri.org Notes • March 2015 • Vol. 36, No. 3 ebri.org Notes • March 2015 • Vol. 36, No. 3 ebri.org Notes • March 2015 • Vol. 36, No. 3 ebri.org Notes • March 2015 • Vol. 36, No. 3 ebri.org Notes • March 2015 • Vol. 36, No. 3 ebri.org Notes • March 2015 • Vol. 36, No. 3 ebri.org Notes • March 2015 • Vol. 36, No. 3 21 20 25 23 13 18 14 24 6 9 8 18% 12% 17% 4% 11% 15% 16% 12% 14% 14% 12% 17% 18% 14% 30% 15% 30% 12% 13% 12% 10% 13% 13% 13% 11% 14% 11% 13% 30% 59% 47% 21% 50% 61% 47% 24% 23%