Spring 2009
Attitudes Affect Deferral Rates
The Spectrem Group’s Deferral Rate Decision Making report found that participants’ attitudes strongly influence their contribution rates. Among various attitudes tested, four had the most significant impact on contributions:
- Those who viewed themselves as “savers” rather than “spenders” had a mean deferral rate of 8.4 percent versus 6.2 percent for those not having that attitude.
- Participants who had a retirement saving strategy contributed at a mean rate of 8.5 percent, while those not having this belief had a rate of 6.5 percent.
- Those who worried about current household debt had a mean contribution rate of 5.7 percent, compared to 7.7 percent for those not having this attitude.
- Participants who felt they were not saving enough toward their goals had a mean deferral rate of 5.8 percent versus 7.9 percent for those who did not feel this way.
Among demographic factors, Spectrem’s report notes that marital status had little effect on contribution rates, nor did the presence or absence of a company match. On the other hand, salary and age were major factors.
