Friday, September 7, 2007
Thanks to Jon Forman (Oklahoma) for forwarding this report from the Congressional Research Service (CRS) entitled: CRS Report for Congress on Pension Sponsorship and Participation: Summary of Recent Trends (Updated September 6, 2007).
Here are some highlights (actually lowlights) from the report:
According to the Census Bureau’s Current Population Survey (CPS), the number of private-sector workers between the ages of 25 and 64 whose employer sponsored a retirement plan fell from 52.5 million in 2005 to 51.2 million in 2006. The number of private-sector workers who participated in employer-sponsored retirement plans fell from 43.1 million in 2005 to 42.0 million in 2006. The proportion of 25 to 64 year-old workers in the private sector who participated in employer-sponsored retirement plans declined from 45.0% in 2005 to 43.2% in 2006. Between 2000 and 2006, the number of private-sector workers between the ages of 25 and 64 who participated in employer-sponsored retirement plans fell from 46 million to 42 million, and the percentage who participated fell from 50.3% to 43.2%
All disturbing trends, especially in a country where retirement saving is already way too low. It still remains to be seen whether the recent enactment of the Pension Protection Act of 2006, including some of its provisions which provide for automatic enrollment in 401(k) plans, will stem the tide.