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Most Not Making Catch-up Contributions |
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Less than one-third of the individuals who are eligible to make catch-up contributions to defined-contribution plans are taking advantage of a new provision that allows those who are 50 or older to save more money for retirement.
 A Spectrem Group survey of retirement plans shows only 30.6% of eligible plan participants are making catch-up contributions to their accounts. In 2006, participants who are 50 or older can make an additional $5,000 in pretax contributions.
Some 39% of the retirement plans surveyed by Spectrem say less than 5% of participants are making catch-up contributions. In contrast, 21% of the plans report that 75% or more of participants are making catch-up contributions.
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High Net Worth Advisor Insights Newsletter April 2008
