Employees Share Current Attitudes About Saving for Retirement

Optimism evident in the private-sector

LIMRA Retirement Research recently surveyed employees from both the private sector and not-for-profit sectors to measure current attitudes on retirement, risk tolerance and confidence about a secure retirement.

Among the highlights, the survey reveals that slightly more than 1 in 10 not-for-profit employees had no tolerance for investment risk and another third had only a little tolerance. By contrast, private sector employees were more accepting of risk with 9 percent not willing to accept any and 25 percent willing to accept a little risk.

One area of strong agreement shows that nearly half of both private sector and not-for-profit employees said they would like their employer to offer more comprehensive information and advice on retirement planning.

Highlights from the Private-Sector Update:

  • Fifteen percent of for-profit employees said they had access to a defined benefit plan, compared to 24 percent of not-for-profit employees. Smaller plans (with fewer than 100 employees) are the least likely to have access (6%) compared to companies with 100-2,499 employees (15%), and large companies with 2,500 or more employees (19%).
  • Almost one in four (38%) said they were “not very” or “not at all” knowledgeable about
    financial investments and products. This may help explain why almost half (47%) would like
    their employer to offer more comprehensive information and advice on retirement planning.
  • About a third show low risk tolerance; nine percent were not willing to assume any investment risk, and a quarter were only willing to accept a little.

Highlights from the Not-for-Profit Sector Update

  • About one-quarter (24%) of not for profit employees said they had access to a defined
    benefit plan. Public/governmental plans were most likely to have access (29%). About one in
    five educational employees (21%) and not-forprofit employees (22%) also said a DB plan was available. This represents a decline in access from 2012.
  • More than one in four (42%) said they were not very or not at all knowledgeable about
    investments. This may help explain why almost half 49% would like their employer to make more comprehensive advice and information on retirement planning available to them.
  • A little more than one in ten (11%) had no tolerance for investment risk and another third had only a little tolerance for risk. In contrast, private sector employees were more riskaccepting – nine percent were not willing to accept any risk and 25 percent were only willing to accept a little.
One area of strong agreement shows that nearly half of both private sector and not-for-profit employees said they would like their employer to offer more comprehensive information and advice on retirement planning

Conducted in June and July of 2013, facts sheets for each sector are available below:
2013 Private Sector Sector Employee Update
2013 Not-for-Profit Employee Update