WINDSOR, Conn., July 14, 2014 — A new LIMRA Secure Retirement Institute Research survey found that 78 percent of workers recognize their personal responsibility to save for their retirement - among defined contribution (DC) plan participants, 84 percent feel it is their responsibility to save for their retirement.
"It is encouraging to see that so many Americans understand that their action - or inaction - during their working years can determine their financial security in retirement," said Alison Salka, senior vice president, director LIMRA Research. "Systematically saving throughout one's career is essential for the majority of Americans to attain their preferred retirement lifestyle once their working years come to an end."
The study shows that 77 percent of working Americans believe all workers should have access to retirement savings plan at work and that they are an effective way to save for retirement. Six in ten Americans agree that those who save in a DC retirement plan are likely to achieve a secure retirement.
LIMRA Secure Retirement Institute found that 85 percent of DC plan participants believe these plans are an effective way to save for retirement. Three in ten American workers believe their DC plan savings will represent the primary source of retirement income. This is more pronounced with younger workers and DC plan participants. Half of DC plan participants and nearly 4 in 10 plan participants under age 45 believe savings in their DC plans will be the primary source of retirement income.
Nearly half of workers participating in their DC retirement plan are more confident that they will realize their chosen retirement lifestyle than non-participating workers (45 percent vs. 32 percent).
"Our research shows that defined contribution plans provide workers the ability to take responsibility for their retirement security," noted Salka. "The data suggests that workers who participate are afforded the confidence that they will achieve their chosen retirement lifestyle."
These findings are based on a nationally representative survey of 1,013 Americans fielded in April 2014.