Retirement plan use holds steady |
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Fri, 30 Mar 2007 23:04
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WASHINGTON (AP) - Participation in tax-favored retirement plans held steady between 2000 and 2003, with half of all eligible Americans taking advantage of the programs, according to a report issued Friday by the Congressional Budget Office.The 50 percent participation rate for retirement plans in 2000 and again in 2003 was one percentage point below the 1997 level, according to the report. The government updates every three years its data on enrollment and contribution to employee-based retirement plans, individual retirement accounts and self-employed plans.Participation among older taxpayers and non earning spouses in single-income households increased slightly in the most recent period.Forty-six percent of U.S. workers were enrolled in employment-based plans in 2003, an increase of one percentage point from 2000. Participation in IRAs dipped one percentage point to 7 percent over the same period. The average 401(k) contribution rose to $3,257 in 2003, up seven percent from 2000.Americans between the ages of 45 and 59 were most likely to participate in some type of retirement plan, at a rate of 64 percent, whereas Americans under 30 had the lowest participation rates of 32 percent.Americans earning between $120,000 and $160,000 continued to have the highest rate of participation of any income group at 82 percent. Americans making less than $20,000 participated only 20 percent, the lowest rate of any group.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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