Employees Link Retirement Plan Accessibility as Top Reason for Participating
Americans say they likely wouldn’t have saved for the long-term if not for their workplace retirement account.
Investment Company Institute’s (ICI) latest survey, “American Views on Defined Contribution Plan Saving, 2025” found that close to half of all American workers with savings in a 401(k) or similar account believe they wouldn’t save for retirement without their plan. This was especially true for younger workers under the age of 35, of which 49 said they would not have saved without a retirement account.
Along with providing access to retirement savings, almost all employees in the survey observed that participating in the accounts helped them consider their long-term needs.
Further, close to all individuals surveyed said that having a payroll deduction benefit in their plan simplified the act of saving for them.
At the same time, Americans showed a desire to preserve traditional DC plan features while disagreeing with government interception in retirement accounts. Eighty-seven percent of respondents said they opposed eliminating the tax advantages of DC retirement accounts, like lowering contribution limits or losing individual investment control. Another 78% of respondents who don’t own DC accounts or individual retirement accounts (IRAs) were also against removing tax advantages.
“Workplace retirement plans are essential to helping Americans save for their future, thanks to key 401(k) features like payroll deductions, a broad range of funds to invest in, and tax advantages,” said Shelley Antoniewicz, an ICI chief economist. “These plans give Americans of all income levels the chance to invest and to control their investments. Policymakers should protect the successful retirement structure Americans value and continue to benefit from.”
Further, 83% of workers were not keen to the idea of government control in retirement accounts, which they believed could reduce control of DC plan investments or how balances are utilized.
An additional 90% also said that retirees should make their own decisions on how to manage retirement assets and income, and three-quarters do not believe that retirees should be mandated to annuitize shares of their retirement accounts, according to the ICI.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.