As the baby boomers near retirement, defects in the nation’s private pension system are becoming obvious. Only about half of workers contribute to an employer-sponsored pension plan in any given year, and Individual Retirement Account (IRA) participation rates are substantially lower. Among workers with tax-preferred retirement saving plans, few make the maximum allowable contribution. And despite the many private savings incentives, many households approach retirement with meager funds.
Pew is no longer active in this line of work, but for more information visit the Retirement Security Project on PewHealth.org.