DISCUSSION

Overall, the results of the logit analysis revealed that age, education, and household income, are positively associated with the likelihood of a consumer having an employersponsored retirement plan. These results support hypotheses 2 (household income levels), 3 (age groups), and 4 (education level) and previous research. However, the results of the analysis do not support hypotheses 1 (minority groups) and 5 (gender). The results of this study can possibly assist practitioners and employers in increasing the participation rates in employersponsored plans. The results reveal that the older, more educated, and higher household income a consumer has, the more likely they are to enroll in their employer’s plan. Employers and practitioners should move beyond minority groupings and take a more in-depth look at the population they are dealing with when attempting to increase enrollment (Stern, 2020). In doing so, retirement plan education programs can be tailored to provide information to employees on the primary reasons for taking advantage of their employer plans, while providing scenarios based on age, education, and household income.

With a decrease in the qualified-benefit plans and the increase in qualified contribution plans, consumers are given ownership of how much and where to invest their funds for retirement. When these plans are provided to employees, information like the results of this study should be provided to them explaining the information broken down by age, household income, and education. In doing so, employees can identify more with the data by categorizing themselves into the groups that are more familiar. Whether or not this additional information will increase participation rates is uncertain. However, as stated previously, prior research has shown that awareness can increase participation rates. By providing awareness of how age, household income, and education effects participation to employees, companies stand to increase their employee’s enrollment and further assist them in obtaining a successful retirement.

References

Burro, G., McDonald, R., Read, D., & Taj, U. (2022). Patience decreases with age for the poor but not for the rich: An international comparison. Journal of Economic Behavior & Organization, 193, 596–621. https://doi.org/10.1016/j.jebo.2021.11.005

Clark, R. L., Hammond, R. G., & Khalaf, C. (2019). Planning for Retirement? The Importance of Time Preferences. Journal of Labor Research, 40(2), 127–150. https://doi.org/10.1007/s12122-019-09287-y

Delfino, D. (2021, March 22). Half of Consumers Think Financial Advisors Are More Expensive Than They Are, But Almost All Who Use One Say They’re Worth It. MagnifyMoney. https://www.magnifymoney.com/blog/news/financial-advisors-cost-survey/ FINRA. (2018). Financial Capability Study: Data and Downloads. https://www.usfinancialcapability.org/downloads.php

Fisch, J., Hasler, A., Lusardi, A., & Mottola, G. (2019). New Evidence on the Financial Knowledge and Characteristics of Investors. Global Financial Literacy Excellence Center

Global Financial Literacy Excellence Center, & FINRA Foundation. (2020). Mind the Gap: Women, Men, and Investment Knowledge

Harvey, C. (2017). Access to Workplace Retirement Plans by Race and Ethnicity. Pension Benefits, 26(5), 6.

Hicks, C. (2021). What to Know Before Hiring a Retirement Financial Advisor. US News & World Report. https://money.usnews.com/ financial-advisors/articles/what-to-know-before-hiring-a-retirement-financial-advisor

Jiménez, I., Chiesa, R., & Topa, G. (2019). Financial Planning for Retirement: Age-Related Differences Among Spanish Workers. Journal of Career Development, 46(5), 550–566. https://doi.org/10.1177/0894845318802093

McKenna, K. (2020). Do I Need A Financial Advisor Or Should I Do It Myself? Here’s When It’s Worth It To Get A Financial Advisor. Forbes. https://www.forbes.com/sites/kristinmckenna/2020/08/10/do-i-need-a-financial-advisor-or-should-i-do-it-myself/

Michelson, S., & Schwartz, L. A. (2018). Retirement Planning in Academia. International Journal of Business, 23(4), 372.

Mottola, G. R., & Skimmyhorn, W. (2019). How are Veterans Faring Financially? Updates and New Evidence from a National Survey. SSRN Electronic Journal https://doi.org/10.2139/ssrn.3516336

Nelson, E. (2021, January 22). Women Versus Men Saving in 401(k) Plans | D&Y Wealth. D&Y Wealth Advisors San Diego. https:// dywealth.com/insights/blogs/investing/women-versus-men-saving-in-401k-plans/

Schatz, P. (2020, November 17). Why People Don’t Participate in Their 401(k) Plans … And Why That’s a Big Mistake. Heritage. https://investfortomorrow.com/retirement-planning-2/why-people-dont-participate-in-their-401k-plans-and-why-thats-a-bigmistake/

Sunagel, B. (2018). Q and A: What are some of the reasons people don’t participate in our 401(k) program or don’t contribute enough? TRA. https://tra401k.com/news/q-and-a-what-are-some-of-the-reasons-people-dont-participate-in-our-401k-program-or-dontcontribute-enough/

Topoleski, J., & Myers, E. (2021). Worker Participation in Employer-Sponsored Pensions: Data in Brief. Congressional Research Servicve.

Transamerica Institute. (2016). Influences of Educational Attainment on Retirement Readiness. Transamerica Center for Retirement Studies.

Tyler, K. (2012). Tailor Your Retirement Planning Messages. HRMagazine, 57(9), 51-52,54,56.

Survey Questions Used in Study

Survey Questions Used in Study

A4A_new_w (The answers to this question were derived from question related to ethnicity)

1 White Alone (non-Hispanic) NH

2 Non-White