Most Americans look for a retirement plan when considering a
job offer, yet only 50% of employers offer one. Nearly 80% of employees view
benefits such as a retirement plan as being key considerations when accepting a
new position, the ADP Research Institute found. However, only 50% of companies
provide a retirement option. While some employers are concerned about cost and
disinterest among management and employees alike, the size of the company
itself may be another reason it does not offer a retirement savings vehicle,
according to ADP.
In terms of industry, the percentage of employers that
provide retirement benefits varies widely. Manufacturing leads the field with
67.1% of manufacturers offering retirement benefits, which could be due to “the
prevalence of unions in this sector, where certain benefit offerings may be
contractually mandated,” ADP says.
After manufacturing, the top five industries for providing
retirement benefits are information (63.0%); professional and business services
(55.9%); financial activities (52.4%); education and health services (51.5%);
and transportation and utilities (49.7%). Similarly, there is a disparity
between smaller and larger companies, which “could be attributed to cost,
administrative complexity and the fiduciary responsibilities that accompany
offering a retirement plan,” ADP says.
Employers with 5,000 or more workers were most likely to
provide retirement benefits (98.4%), followed by those with 1,000 to 4,999
employees (96.0%). For companies with fewer than 1,000 employees, the
percentage offering retirement benefits steadily declines according to their
size. Nine in 10 (93.3%) of those with 500 to 999 workers offer these benefits,
as do 85.3% with 50 to 499 workers, 60.3% with 20 to 49 workers, and just 33.0%
with one to 19 workers.
The data represents 10 million employees at 161,000
companies, all between the ages of 20 and 69 and earning at least $20,000
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