The year 2000 represents the 10th
anniversary of the Retirement Confidence Survey (RCS) and the
third year for the Minority RCS and Small Employer Retirement
Key RCS findings over the past 10 years
- The fraction of workers saving for
retirement has trended upward, and today 80 percent of
households report that they have begun to save.
- The fraction of workers who have
attempted to calculate how much they need to save for
retirement has risen noticeably over the past several
years. Today, 56 percent of households report that they
have attempted the calculation.
- One-half of workers who have
attempted such a calculation report that it has changed
their behavior, such as saving more and/or changing where
they invest their retirement savings. Workers who have
done the calculation appear to be in better shape
regarding their retirement finances.
- Worker confidence in the ability of
Social Security to maintain benefit levels bottomed out
in 1994 and 1995. Workers today are just as confident as
they were in 1992, although the majority remain not
confident in Social Security.
- Regarding overall retirement
confidence, Hispanic-Americans tend to be the least
confident among the surveyed minority groups that they
will have enough money to live comfortably throughout
their retirement years.
Key SERS findings include:
- While cost and administrative
issues do matter to small employers, they are not the
primary reasons for low plan sponsorship rates.
Employee-related reasons are most often cited as the most
important factor for not offering a retirement plan.
Business-related reasons, such as profitability, are also
a main decision-driver.
- It is important to note what small
employers without plans do not know about plan
sponsorship. Small employers that do sponsor a
retirement plan report that offering a plan has a
positive impact on both their ability to attract and
retain quality employees and the attitude and performance
of their employees. The survey results indicate that many
small company nonsponsors may not be aware of such
potential business benefits from plan sponsorship.
- In addition, many nonsponsors are
unaware of the plan options available to them, in
particular the ones created specifically for small
employers, such as SIMPLE and SEP retirement plans.
Therefore, some small employers may be making a premature
decision not to sponsor a plan based on incomplete