Retirement Savings Of Private And Public Sector Employees: A Comparative Study

Abstract

This study examines the retirement plan participation and savings for United States government employees using the Panel Study of Income Dynamics data set. The findings of this study indicate that plan participation increases with age, income and educational attainment. More Government employees are enrolled in defined benefit plans than non Government employees. Also, those government employees who participate in defined contribution plans hold greater amounts within their plans and make greater contributions into their retirement plans than the non government employees. Minorities and employees with lower income are less likely to participate in the Individual Retirement Accounts, while those with higher educational attainment are more likely to participate.