Coverage

While many Americans save for retirement through job-based plans, they are not a panacea. Many private sector workers don’t have access to such plans, while others face issues such as competing priorities such as children’s educations, payment for other debts, or other financial needs.

According to the most recent data from the Pew Charitable Trusts, about 35% of private sector workers over the age of 22 don’t work for a company that offers a plan. The news is worse for younger workers compared to older ones: About 41% of millennials didn’t have access to an employer-sponsored retirement plan, whereas the numbers are 35% for Gen X and 30% for baby boomers.

Beyond the issue of availability, there is the question of participation. Millennials are the most likely to opt out—with only 52% making contributions when available—whether it’s due to not earning enough or simply not being concerned with something so far in the future. Boomers, at 80%, and Gen Xers, at 75% are more active about participating.

Note that employer matches of employee contributions offer a signification motivational boost, regardless of age cohort—as much as 15.5%.