Issue Briefs

The portion of full-time, full-year workers age 21-64 who participated in an employment-based retirement plan remained stable at 54.5 percent in 2010, showing no appreciable drop from 2009 despite the continuing weakness in the economy, according to a new report by EBRI. This makes 2010 it only the second year in the last six years without a decrease. In general, workers in Midwestern, Mid-Atlantic, and Northeastern states had the highest levels of participation in employment-based retirement plans, while those in Southern and Western states had the lowest levels. EBRI Issue Brief Oct 11, 2011 44 pages

401(k) participants who invested in target-date funds (TDFs) overwhelmingly tend to stick with these investments over time, according to new research by EBRI. Just over 90 percent of 401(k) participants investing in TDFs in 2007 stuck with them through 2009. Using a proxy for the auto-enrollment status of participants, those identified as auto-enrollees were even more likely to have stayed with TDFs, at a rate over 95 percent. 401(k) participants who were younger and had lower account balances were more likely to use TDFs and to continue to use them. Those more likely to stop investing in TDFs were older, had longer tenure, or had higher account balances, although these participants overall stayed with TDFs at a high rate. EBRI Issue Brief Aug 30, 2011 24 pages

As various states grapple with reforming their public employee pension systems, the experience of how the federal government managed pension reform 25 years ago may provide some useful background to governors and state legislatures. This article takes a look at how the federal government handled pension reform and the political and legislative forces involved when Congress enacted the Federal Employee Retirement System Act of 1986. EBRI Issue Brief Jul 1, 2011 24 pages

A new study by EBRI finds that if Baby Boomers and Gen Xers delay their retirement past the age of 65, many of them still would not have adequate income to cover their basic retirement expenses and uninsured health care costs. The research also shows that even if a worker delays his or her retirement age into their 80s, there is still a chance the household will be “at risk” of running short of money in retirement. However, the chance of success for retirement adequacy improves significantly as individuals reach their late 70s and early 80s. EBRI Issue Brief Jun 7, 2011 36 pages

For new retirees wanting to ensure they don’t run short of money in retirement, two products offer a source of guaranteed lifetime income: immediate annuities (which immediately begin to generate lifetime income) and longevity annuities (which delay payments until the retiree hits an advanced age, such as 80 or 85). New research by the nonpartisan Employee Benefit Research Institute (EBRI) finds that, generally, either type would be effective at reaching desired income adequacy targets—especially for lower-income retirees. EBRI Issue Brief May 18, 2011 36 pages

In a sign that Americans are recognizing the realities they face about their chances for a comfortable retirement, the 2011 Retirement Confidence Survey (RCS) finds workers are more pessimistic than at any time in the two decades the RCS has been conducted: More than a quarter (27 percent) of workers now say they are “not at all confident” about retirement, up 5 percentage points from the level measured just one year ago. Reinforcing that trend, the percentage of workers saying they are “very confident” of a comfortable retirement ties with 2009 at 13 percent—the lowest rate ever measured by the RCS. EBRI Issue Brief Mar 15, 2011 40 pages

Depending largely on age and income, between 4–14 percent of Americans who otherwise would have had adequate income to cover basic expenses in retirement became “at risk” of running short because of the housing and financial crisis of 2008–2009, according to a new report by EBRI. EBRI Issue Brief Feb 1, 2011 28 pages

Even though the new health reform law will reduce some health costs in retirement for many people, retirees will still need a significant amount of savings to cover their out-of-pocket health expenses when they retire, according to a new report by EBRI. For instance, EBRI finds that men retiring in this year (2010) at age 65 will need anywhere from $65,000–$109,000 in savings to cover health insurance premiums and out-of-pocket expenses in retirement if they want a 50–50 chance of being able to have enough money; to improve the odds to 90 percent, they’ll need between $124,000–$211,000. Women in particular will need more savings than men because they tend to live longer. EBRI Issue Brief Dec 1, 2010 16 pages

The average 401(k) retirement account balance rose 31.9 percent in 2009, according to a report released today by the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI) analyzing a group of consistent participants. The rise in 2009 was in line with the 2003–2007 pattern of steady increase in account balances and in contrast to the 27.8 percent decline in 2008. EBRI Issue Brief Nov 22, 2010 68 pages

A new study released jointly by EBRI and DCIIA finds that auto-enrollment and auto-contribution escalation in 401(k) plans—depending on how they’re implemented and used—can result in a big improvement in retirement savings, especially for low-income workers. EBRI Issue Brief Nov 1, 2010 12 pages