By Paula Aven Gladych
have more risk tolerance when it comes to their retirement savings than of nonprofit employees.
According to LIMRA Retirement Research, 11 percent of not-for-profit employees had no tolerance for investment risk and another third had only a little tolerance.
Private-sector employees were much more tolerant – with only 9 percent unwilling to accept any and 25 percent willing to at least a little.
One area in which both agree? Nearly half of both private sector and nonprofit employees said they’d like their employers to offer more comprehensive retirement planning information and advice.
In the private sector, there was a 77 percent participation rate in defined contribution plans, compared to a 79 percent participation rate among not-for-profit employees – this despite the fact more private sector organizations tend to offer employer matches more than their nonprofit cousins.
The median deferral rate for the private sector was 6 percent and the median deferral for the private sector was 6.5 percent. The average DC plan
balance for private sector employees was $84,979, compared to an average plan balance of $83,249 for the nonprofit sector.
About one-quarter of nonprofit employees said they had access to a defined benefit plan
. Nearly 30 percent of public/government workers said they had access to these types of plans. About 21 percent of educational employees and 22 percent of nonprofit employees said a defined benefit plan was available to them, which was a decline from 2012.
Originally published on BenefitsPro.com