Contributory Retirement Saving Plans: Differences across Earnings Groups and Implications for Retirement Security
Social Security Bulletin, Vol. 77(2), p. 13-24, 2017
12 Pages Posted: 9 May 2017
Date Written: May 2, 2017
This article examines how savings in defined contribution (DC) retirement plans vary across the earnings distribution. Specifically, the authors investigate the extent of an earnings gradient in access to, participation in, and levels of contribution to DC plans. Using a nationally representative sample of Survey of Income and Program Participation respondents to data from their W-2 tax records, the authors find that DC plan access, participation, and contributions increase as earnings increase, even after controlling for key socioeconomic and labor-market covariates. They also find that, despite changing economic conditions, the earnings gradient changed little between 2006 and 2012.
Keywords: Defined Contribution Pensions, Earnings Gradient
JEL Classification: J10, J31, J32
Suggested Citation: Suggested Citation