Saving for Retirement: Here, There, and Everywhere

According to the latest figures from the Department of Labor, about 40 percent of all private- and publicsector workers participate in a DC plan; in 2015, there were 78 million active participants in DC plans, contributing about $240 billion (with employers kicking in another $150 billion).1 Yet only 2.6 million taxpayers contributed $13 billion on a pre-tax basis into traditional IRAs, with similar numbers for Roth IRAs.2 Although they are the preferred savings vehicle, DC plans are not without their drawbacks. IRAs. 1 Bureau of Labor Statistics, Department of Labor, National Compensation Survey, March 2017; Employee Benefits Security Administration, Department of Labor, Private Pension Plan Bulletin: Abstract of 2015 Form 5500Annual Reports, February 2018. 2 Internal Revenue Service, Statistics of Income-2015 Individual Income Tax Returns Line Item Estimates. 3 LIMRA Secure Retirement Institute analysis of 2016 Survey of Consumer Finances, Federal Reserve Board, 2017.