ROSELAND, N.J., April 28, 2014 /PRNewswire/ -- ADP®, a
leading global provider of Human Capital Management (HCM)
solutions, today announced the findings of a new ADP Research
Institute® study that examined the retirement savings
rates of approximately 9 million U.S. employees in 2013. The
study found that 60 percent the workers saved for retirement at an
average salary deferral rate of 7 percent. Across most wage
categories, women saved at a higher rate than men, and workers save
more as they approach retirement.
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"The Retirement Savings Paradigm: Factors Influencing
Saving found that more women are saving for retirement than
men," said Ahu Yildirmaz, vice president and head of the ADP
Research Institute. "Factors such as lower incomes and time spent
out of the workforce still put women at greater risk of not
achieving a secure retirement. But efforts by financial
advisors and agencies to raise awareness among women of the
importance of saving for retirement appear to have made an
impact."
In addition to determining the average retirement saving rates,
segmentation of the data by age, gender, compensation level, and
industry revealed the following insights:
- More Women are Saving Than Men: Not only are more women
saving, they have a higher savings rate than men, despite the fact
that women are disproportionately represented in lower wage
jobs.
- Gen Y Workers Are Slow to Start: Less than half of
employees in the 20-29 age bracket saved compared to 65 percent in
the 50-60 age bracket. What's more, 20-29 year olds saved on
average less than 5 percent, whereas those in the 50-60 age bracket
set aside 7.7 percent. At the same time, those in the 61-69
bracket saved more than 9 percent. This data reinforces a
lifetime savings pattern: as retirement nears, more employees
attempt to "catch up" on their savings.
- Small Business Employees Save More: While a higher
number of employees who work for larger companies saved, they
tended to save at lower rates than employees who work for smaller
firms. In companies with fewer than 20 employees, the savings
rate exceeded the average of 7 percent across all the industries
measured.
- Compensation Dictates Savings Rates: In general, workers
in higher wage groups save, and they save more. For example, in
large companies (more than 5,000 employees), only 50 percent of
workers in the lowest wage category saved, but 80 percent of those
earning more than $110,000
saved.
- Industry Matters: Workers in the financial activities
and information industries had retirement saving rates that are
among the highest, at 70 percent and above. In comparison,
only 37 percent of employees working in the leisure and hospitality
sector saved. Construction is only slightly better, with 45
percent of employees having put away money.
"While this new report reveals noteworthy insights and some
encouraging trends, it also reflects that much more needs to be
done to help Americans prepare themselves for a financially secure
retirement," said Chris Augelli,
vice president of product marketing and business development at ADP
Retirement Services. "The data also suggests that particular
attention needs to be paid to better engaging younger generations
in the retirement savings process early in their careers, to help
them take advantage of the power of compound earnings over time to
achieve their retirement goals."
To watch a brief video about the key findings of the study,
please click here.
Click here to view an infographic display of the key
findings.
To obtain a free copy of The Retirement Savings Paradigm:
Factors Influencing Saving, please click here, or visit
adp.com/research.
About the ADP Research Institute®
The ADP
Research Institute is a specialized group within ADP that provides
insights to leaders in both the private and public sectors around
issues of human capital management, employment trends and workforce
strategy. For more information about the ADP Research Institute,
visit: www.adp.com/research.
About ADP
With more than $11
billion in revenues and more than 60 years of experience,
ADP® (NASDAQ: ADP) serves approximately 620,000 clients
in more than 125 countries. As one of the world's largest
providers of business outsourcing and human capital management
solutions, ADP offers a wide range of human resource, payroll,
talent management, tax and benefits administration solutions from a
single source, and helps clients comply with regulatory and
legislative changes, such as the Affordable Care Act (ACA).
ADP's easy-to-use solutions for employers provide superior
value to companies of all types and sizes. ADP is also a
leading provider of integrated computing solutions to auto, truck,
motorcycle, marine, recreational vehicle, and heavy equipment
dealers throughout the world. For more information about ADP,
visit the company's Web site at www.adp.com.
Contact:
Dick Wolfe
ADP
(973) 974-7034 Office
(201) 396-5954 Mobile
Dick.Wolfe@adp.com
To view the multimedia assets associated with this release,
please click:
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SOURCE ADP (Automatic Data Processing, Inc.)