In the United States, employees in the not-for-profit sector are about twice as likely to have a defined benefit (DB) pension plan than people who work at for-profit organizations. Workers in both camps are concerned about having enough money when they retire.
Industry research group LIMRA recently surveyed US employees in both the for-profit and not-for-profit sectors about their workplace retirement savings. The poll revealed that only 16% of for-profit workers have access to a defined benefit (DB) pension plan and will have to rely heavily on defined contribution (DC) plans to provide retirement income. However, in the not-for-profit sector almost 35% of employees have access to a DB pension.
54% confident that their savings will last through retirement
The study found that employees in both segments are concerned about how long their savings will last. Among for-profit workers, just 54% indicated that they are confident that their savings will last through retirement. Anxiety levels were only slightly lower among those at not-for-profits, where 58% said they were confident their retirement funds would last.
Where will the extra money come from? LIMRA found that about one out of four survey respondents intends to keep working in retirement: 26% of for-profit employees expect to supplement their pensions with part-time jobs, while 25% of those in the not-for-profit sector plan to find part-time work.
Many workers in the US would benefit from meeting with a financial advisor: about a third of the survey participants in both categories described themselves as "not very knowledgeable" or "not at all knowledgeable" about investments or financial products.