An Exploration of Contributing Factors Related to Retirement Plan Participation

Marc B. Lewis, D.B.A.8

Joseph T. Patton, D.B.A.9

Abstract

Approximately 30% of consumers are not participating in their employer-sponsored retirement plans (Topoleski & Myers, 2021). This study examines minorities, non-minorities, and other contributing factors such as age, education, household income, gender, and education as they related to a consumer’s likelihood of participating in their employer’s sponsored retirement plan. A secondary data analysis was conducted using the 2019 National Financial Capability Study. With over 25,000 respondents, the results of the analysis reveal that age, education, and household income are strong contributors in determining the likelihood of an individual participating in an employer-sponsored plan. However, the data reveal that an individual’s age and minority group are less correlated with the likelihood of plan participation. These results provide insight for plan participants, practitioners, and plan sponsors on educating their participants on the various contributors that effect their participation.

8. Associate Professor, Accounting, Central Connecticut State University, mlewis@ccsu.edu

9. Instructor, Department of Management Programs, Florida Atlantic University, jpatton6@fau.edu