Much is said about the need to increase retirement savings and access to plans, but a recent report on savings says that there is some good news about retirement savings.
In its annual savings trends report, Ascensus includes data on retirement savings in the results, and it notes that there are some positive trends in the savings behaviors of certain segments of the population and concerning some kinds of accounts.
A Head Start
“Savers are beginning to recognize the importance of starting to save early in their adult lives,” Ascensus says, reporting that 27% of those in the 25-34 age group are on track to meet their retirement goals, making that the age group with the highest number of people on course. Just behind them, and still above 25%, are the 35-44 and 45-54 age groups.
Autos Drive Participation
Automatic features are another plus, Ascensus reports, noting that it found that retirement plan participation rates increase with the number of automatic features a plan includes:
| Automatic Feature | Participation Rate |
| None | 70% |
| Auto enrollment | 80% |
|
Auto enrollment and |
81% |
| Auto enrllment, auto increase and employer match |
84% |
Segmented Participation and Saving
Plan participation varies by industry segment, Ascensus found:
Finance and insurance: 81%
Information: 69%
Real estate, rental and leasing: 69%
Mining: 68%
Agriculture: 42%
Forestry: 42%
Fishing: 42%
Hunting: 42%
Administrative support: 35%
Waste management: 35%
Transportation: 34%
Warehousing: 34%
Food and accommodation services: 30%
But Ascensus found that being among the segments with the highest participation rates doesn’t necessary translate to the highest average account balances:
Finance and insurance: $90,527
Professional, scientific and technical services: $79,209
Health care and social assistance: $72,924
Wholesale trade: $71,111
Real estate, rental and leasing: $38,554
Educational services: $34,632
Arts, entertainment and recreation: $32,768
Food and accommodation services: $20,501
Ascensus also reports that the average account balances for each of those groups grew by 12%-18% from 2016 to 2017.
IRAs
IRAs are another major component of retirement savings, Ascensus says:
Traditional IRAs: assets of $26.7 billion, average account balance of $27,000
Roth IRAs: assets of $2.9 billion, average account balance of $13,000
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