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.