1) Most workers who are likely to have the ability to save for retirement and to be focused primarily on saving for retirement participate in an employer-sponsored
retirement plan. In 2016, 78% participated in an employer plan, either directly or through a spouse.
2) Younger and lower-income households are more likely to report that they save primarily for reasons other than retirement—for example, a home purchase, for the
family, or education. Economic analysis suggests that these preferences are rational. Older and higher-earning workers are more likely to save primarily for retirement and
thus are more likely to prefer having a portion of their compensation in the form of retirement benefits rather than fully in cash.
3) Retirement plan participation increases with age and income; consistent with their stated reasons for saving, younger and lower-income workers are less likely to
participate. Among all workers aged 26 to 64 in 2016, 64% participated in a retirement plan either directly or through a spouse. That number ranged, however, from 55% of those aged 26 to 34 to 69% of those aged 45 to 64; and from 24% for those with adjusted gross income (AGI) less than $20,000 per person to 86% for those with AGI of $100,000 per person or more.”