Small business retirement plan participation and needs for information: evidence from a survey in Vermont.
Wang, Qingbin ; Trent, Elizabeth ; Parsons, Robert 等
Introduction
While small businesses represent a key source of employment and
income in the United States, one challenge faced by many small business
owners is how to deal with retirement for themselves and their
employees. According to the U.S. Small Business Administration (2007),
there are about 25 million small businesses in the United States and
they employ more than 50% of the nation's private workforce and are
consistently responsible for creating around 75% of net new jobs. Small
businesses have been considered as the economic engine of many American
communities but, on the other hand, the accomplishments of small
businesses come with challenges and risks. For example, following the
discussion about small business health care crisis that has received a
lot of publicity in recent years, many scholars and policymakers have
pointed out that the United States is facing a small business retirement
crisis that may affect far more small business owners and employees
(Guard, 2006; Smyth, 2006; Devaney and Chien, 2000).
According to the statistics from some recent surveys (Girard,
2006), more than 60% of American small business owners do not offer any
retirement plan to their employees and 47% of small business owners are
unsure about how they plan to handle their own retirement. The situation
is much worse for sole proprietors who work by themselves as only 6% of
them have a 401(k) plan. According to the 2003 Small Employer Retirement
Survey conducted by the Employee Benefit Research Institute (EBRI,
2003), 43% of the small companies not offering a retirement plan to
their employees said they were not at all likely to start a plan in the
next two years, up from 32% in the survey of 1998. A study by Fidelity
in 2006 suggested that most small businesses realized the benefits of
offering a retirement plan but many did not realize a plan was available
to them (Fidelity, 2006). The same study also reported the 26% of the
small business owners surveyed by Fidelity believed there was a lack of
401(k) plans to suit their company's small size and 40% of the
respondents perceived cost as the major barrier in offering a 401(K)
plan to their employees.
There are many studies on retirement planning and programs in the
literature but few of them have focused on small businesses.
Specifically, there is a dearth of information on how small business
owners deal with retirement for themselves and their employees,
especially for businesses with no employees or a small number of
employees. This study is motivated by this lack of information on small
business retirement plan participation and the need for information. Our
major objective is to collect primary data through a mail survey of
Vermont small businesses with less than 20 employees and to use the data
to analyze how Vermont small businesses deal with retirement planning
and financial management.
Methods
Our objectives were accomplished in two ways: (1) a survey of
Vermont small business owners was developed and conducted to collect
primary data in 2003, and (2) the primary data collected from the survey
were analyzed to test alternative hypotheses and to derive conclusions
using appropriate statistical methods.
Data Collection
A random sample of 3,000 Vermont businesses with less than 20
employees was purchased from Survey Sampling, a research firm located in
Fairfield, Connecticut. The 3,000 businesses were randomly selected by
the research firm from all Vermont businesses with fewer than 20
employees. The business size was limited to fewer than 20 employees
based on the focus of this study. Information from the research firm
includes business name, address, size, phone number, industrial code,
etc.
A survey questionnaire was developed at the University of Vermont.
It included questions about business ownership, participation in
retirement plans, needs for retirement and financial management
information and the preferred way to receive such information, and
demographic information, etc. The questionnaire was pre-tested through a
focus group of small business owners and their comments and suggestions
were incorporated in the revision. The survey was conducted in three
steps: (1) A copy of the questionnaire together with a cover letter from
the University of Vermont Extension System and postage-paid return
envelope was mailed to each of the 3,000 businesses during the first
week of February 2003. (2) A post card was mailed to 1,500 businesses
that were randomly selected from the 3,000 businesses two weeks after
the first mailing. The post card was mailed to only 1,500 of the 3,000
businesses due to our budget constraint. (3) For the 1,229 surveys
returned by the post office due to undeliverable address (no longer in
business, incorrect addresses, moved out of Vermont, etc.), the post
office provided new addresses for 150 of them and the surveys were
mailed to 120 of them with Vermont addresses (the other 30 businesses
moved out of Vermont). We received a total of 828 usable responses and
the survey yielded a response rate of 43.8%, out of an original sample
size of 3,000 once we removed from the sample the 1,109 businesses that
had eitehr undeliverable addresses or had moved out of Vermont. The
overall response rate of 43.8% is considered to be very good as compared
to many other mail surveys and this high response rate was likely due to
that many Vermont small businesses are familiar with the University of
Vermont Extension System.
Data Analysis
The primary data collected from the 828 respondents were first
analyzed using Chi-square test and T-test to examine the differences
between those who participated in at least one retirement plan and those
who did not participate in any retirement plan. Logit regression
analysis was then conducted to identify the factors that might have
contributed to the likelihood of participation in a retirement plan and
the likelihood of interest in retirement information. The analysis
results are reported in the next section.
Empirical Results
Data collected from the survey were first analyzed using Chi-square
test and T-test to identify significant differences between the two
groups of small business owners (those who have participated in at least
one retirement plan and those who have not participated in any
retirement plan). Results reported in Table 1 suggest several
conclusions. First, 57.9% of the surveyed respondents indicated they
have participated in at least one retirement plan and 42.1% indicated
they had not participated in any retirement plan. Second, the two groups
are not statistically significantly different in age, planned age of
retirement, age when they began working, household size and years in
business. Note that the critical value for significance used in this
study is P< 0.05 and Table 1 included only the test statistics that
are significant at the 0.05 significance level. Third, for the
significant variables, small business owners who participated in at
least one retirement plan had significantly higher education level, were
more likely to be in the business of professional and financial
services, less likely to be in agriculture and retail business. They
were more likely to have 5-19 employees, and less likely to be
interested in information on debt management and money management.
Respondents were also asked to check the type of their retirement
plans and the results are summarized in Table 2. As shown in the table,
among the 463 respondents who participated in at least one retirement
plan, the most common type of retirement plan is an Individual
Retirement Account (IRA) (65.4%), followed by a Simplified Employee
PlanIRA (SEP-IRA) (29.4%), SIMPLE from present position (12.5%), and
401k or 403 (b) from present position (9.9%) or former position (9.7%).
Note that the table includes both the percentages of respondents and the
percentages of responses, because some respondents have participated in
more than one retirement plan.
When asked about the type of retirement plans their spouses or
partners have, the most frequent response from the 370 respondents whose
spouses or partners have participated in at least one retirement plan is
an IRA (60.8%), followed by 401 k or 403(b) from his or her present
positions (38.9%), SEP-IRA from his or her present position (11.6%), and
401k or 403(c) from his or her former positions (11.1%). These results
are reported in Table 3.
For the purpose of improving the small business education programs
offered by the University of Vermont Extension System, the survey
included questions about small business needs for information on debt
management, investment, money management and retirement and the
preferred ways of receiving such information. The results reported in
Table 1 indicate that the proportions of the 828 respondents interested
in information on debt management, investment, money management and
retirement were, respectively, 22.9%, 33.2%, 32.0% and 34%. Results
reported in Table 4 suggest that the most preferred methods of receiving
information were brochure and direct mail and the least preferred
methods were classes at work, classes elsewhere, and internet web pages.
When the respondents were asked if they plan to continue to work
after retirement age, 61% of them responded that they would, 34% of them
were not sure, and only 5% indicated that they did not plan to work
after retirement age. While this finding suggests that most small
business owners are likely to continue to work after retirement age, the
survey did not ask about reasons for planning to work after retirement
age. This fording is quite consistent with the result reported by Girard
(2006) that 55% of surveyed small business owners said they never plan
to retire and 62% had no exit plan at all.
Table 5 shows the relationship between retirement plan
participation of business owners and an employer-based retirement plan
offered to employees. Results indicate that 389 or 47% of the surveyed
businesses did not have any employees and the remaining 439 or 53%
businesses had one to 19 employees. For the businesses with at least one
employee, 74.9% of them did not offer any retirement plan to their
employees. Table 5 also suggests that business owners who participated
in at least one retirement plan are more likely to offer retirement
plans to their employees (42.9%) as compared to those who had not
participated in any retirement plan (2.1%). Several business owners made
the comment that it was too much work to offer employer-based retirement
plans.
Two logit regression models were estimated to identify the factors
that might have affected the probability for a small business owner to
have participated in retirement plans and the probability for business
owners to be interested in retirement information, respectively. The
results are reported in Table 6 and Table 7. Numbers reported in the
last column of Table 6 and Table 7, Exp(B), can be interpreted as the
marginal impact of the independent variables on the odds for the
dependent variable to be 1. For example, an Exp(B) value of 1.0 in the
last column for a particular independent variable means that a change in
the independent variable has no impact on the odds for the dependent
variable to be 1 (i.e., it is equally likely for the dependent variable
to be 1 or 0). On the other hand, an Exp(B) value of 1.5 means that the
odds for the dependent variable to be 1 increases 0.5 (i.e., it is 50%
more likely for the dependent variable to be 1 than to be 0) when the
independent variable increases by one unit. Similarly, an Exp(B) value
of 0.4 means that it is 60% less likely for the dependent variable to be
1 than to be 0 when the independent variable increases by one unit.
The first model with an overall prediction power of 72% suggests
five conclusions (see Table 6): (1) business owners with less than five
employees are less likely to participate in retirement plans and
business owners with more than nine employees are more likely to
participate in retirement plans, (2) respondents who are concerned about
social security are more likely to participate in retirement plans, (3)
respondents with a retirement plan from previous jobs are very likely to
keep the retirement plan, (4) people with higher level of education are
more likely to participate in retirement plans, and (5) business owners
are a little bit less likely to participate in retirement plans if their
spouses have participated in retirement plans. Note that each of the
above conclusions is based on the condition that all other variables in
the model are held constant.
The second model with an overall explanation power of 67% suggests
four major conclusions (see Table 7): (1) respondents who are concerned
about social security are less likely to be interested in retirement
information and one possible explanation is that they might have already
obtained retirement information, (2) respondents who have worked more
years or with higher education are slightly less likely to be interested
in retirement information, (3) respondents with more children under 18
are more likely to be interested in retirement information, and (4)
respondents who have already participated in retirement plan are less
likely to be interested in retirement information. Similar to the first
logit model, each of the above conclusions is based on the condition
that all other variables in the model are held constant.
Discussion
Although the importance and benefits for small business owners to
participate in and offering retirement plans to employees are well
documented (Fidelity, 2006), a majority of small businesses in the
United States do not offer any retirement plan to their employees and
many of them do not have any retirement plan for themselves. The lack of
retirement savings for small business owners and employees is partially
due to the observation that increasing numbers of small business owners,
managers and employees have paid more attention to salary rather than
benefits and security, and fewer and fewer pensions are available to
workers in small companies. As a result, the responsibility to make
investments and assume the risks for retirement has been increasingly
shifted from employers to employees (Schultz, 1999). According to the
U.S. Department of Labor (2000), workers in small companies are
significantly less likely to be offered retirement and pension plans as
compared to workers in large companies. Results from this case study of
828 small businesses with less than 20 employees in Vermont confirm that
the lack of small business retirement plan participation and saving,
especially small business employees, is a problem that requires more
research, education programs, and policy interventions.
Primary data from 828 small business owners with less than 20
employees in Vermont indicate that 42% of them did not participate in
any retirement plan. For businesses with 1 to 19 employees, 75% of them
did not offer any retirement plan to their employees. The lack of
retirement savings for small business owners and employees in the United
States has significant implications. Many small business workers may
face poverty after retirement age. As suggested by Leibowitz (1999),
more than 50% of workers without a pension or retirement plan may have
social security as their sole retirement income. This implies that many
workers working for small businesses may depend on social security
payment after retirement and many of them may have a high chance of
facing poverty due to reductions in social security benefits. While
social security was begun with the notion that it would only act as a
supplement to other sources of income in retirement, increasing numbers
of retired people are depending on social security payment due to their
lack of retirement savings. Leibowitz (1999) estimated that the average
social security recipient received approximately $6,000 per year in 1999
as compared to the $8,959 poverty threshold for a person at age 65 or
above. While the U.S. Social Security Administration (1998) estimated
that social security can not be expected to replace more than 40% of
preretirement income, the reality is that many Americans rely on social
security too much. For example, according to a survey conducted by the
Retirement Corporation of America (2002), 23% of the surveyed
respondents "intend to rely on social security as their main source
of income in retirement." The unrealistic expectations about social
security payments and our aging population may increase the uncertainty
and risk level of our social security system. Retirees currently count
on social security for about an average of 40% of their retirement
income but, in the future, social security may provide only 14% of
retirement income and the rest will have to come from retirement saving
and other sources (Girard, 2006).
While Fronstin (1999) reported that slightly more than one-third of
men and women in his study had not thought much about retirement, this
study indicates that less than one third of small business owners were
interested in retirement information. To begin to change the situation,
we need to educate small business owners on the importance of planning
for retirement. Not only should we begin to think about education, but
also we need to find an appropriate way to relay such information.
Through this survey, we found that the majority of small business owners
who were interested in retirement information prefer to receive
information from brochures and direct mail. Although a previous study
(Oison et al., 2000) identified the Internet as a growing trend for
individuals to receive information, this present study did not support
that finding for the population of small business owners in Vermont.
However, as one limitation of this study, the survey neglected to ask if
the respondents have access to the Internet. A lack of internet access
may be a reason for many people disliking the Internet as a way to
obtain retirement information.
Our finding that many small business owners planned to continue to
work after retirement agrees with previous studies (Fronstin, 1999;
Goldberg, 2000). In addition, since most of the respondents could be
classified in the group of baby boomers on average, the finding about
their lack of plans for retirement and desire to continue to work also
agrees with Powell (2001). The majority of small business owners seem to
hold a self-fulfilling prophecy that, if they do not plan for
retirement, they will continue to work. Working until you drop may have
been considered as one solution to the lack of retirement savings for
small business owners and employees but it is hardly realistic and many
employees may not even have that option. Educators and policy makers
must recognize the need to help small business owners by providing
current information about many financial topics such as alternative
retirement plans and the implications of early retirement planning for
future lifestyle choices. Educational programs for young small business
owners on the time value of money and how saving at a young age would
allow retirement savings to grow more steadily than money saved later,
may reverse this trend.
Concluding Remarks
This case study presents some significant findings about how small
business owners deal with retirement for themselves and their employees
based on primary data from a survey of small business owners in Vermont.
Results from 828 small business owners with less than 20 employees
indicate that 42% of them did not participate in any retirement plan
and, for the 439 businesses with one to 19 employees, 75% of them did
not offer any employer-based retirement plan to their employees. Results
also show that 66% of the respondents were not interested in retirement
information and, for those who were interested, the preferred ways of
receiving such information were brochures and direct mail while the
least preferred ways were classes and internet web pages. Although this
study is based on a survey of small business owners in the state of
Vermont, small business retirement is clearly a national problem and
this study is expected to contribute to our understanding about the
problem.
While small businesses play an important role in the U.S. economy,
the lack of retirement savings for so many small business owners and
employees is alarming and may suggest a small business retirement crisis
on the horizon. Based on primary data from 828 small business owners,
this study presents some findings that may be interesting to
policymakers, educators, small business owners and employees. The
findings call for more policy initiatives, programs, and research for
encouraging and helping more small businesses to develop retirement
programs for their owners and employees. The alarming situation of small
business retirement requires collaborative and aggressive efforts for
reducing the socioeconomic effects of a small business retirement
crisis.
References
Devaney, S. A. and Y. W. Chien. 2000. "Participation in
Retirement Plans: A Comparison of the Self-Employed and Wage and Salary
Workers," Compensation and Working Conditions 5, no. 4: 31-36.
EBRI (Employee Benefit Research Institute). 2003. "The 2003
Small Employer Retirement Survey Summary of Findings,"
http://www.ebri.org/surveys/sers/index.cfin?fa-sers2003
Fidelity. 2006. "Fidelity Research Shows Four in Ten Small
Business Owners Perceive Cost to be a Major Barrier in Offering a 401
(K) Plan," http://content.members.fidelity.com/Inside_Fidelity/
fullStory/l,,7165,00.html
Fronstin, P. 1999. "Retirement Patterns and Employee Benefits:
Do Benefits Matter?" Gerontologist 39: 37-47. Girard, K. 2006.
"Small Business Retirement Crisis on the Horizon,"
http://allbusiness.sfgate.com/humanresources/
employee-benefits-retirement/4057857-1.html
Goldberg, B. 2000. Age Works. New York: The Free Press.
Leibowitz, M.L. 1999. "Financial Strategies for a New Century:
Tips from America's Experts," TIAA-CREF Teleconference,
University of Vermont, Burlington, Vermont, October 22.
Olson, C.M., B.S. Rauschenbach and W.R. Lacy. 2000. Survey of New
York State Residents. Ithaca: Cornell Cooperative Extension.
Powell, E.A. 2001. "Retirees Return to the Work Force,"
Burlington Free Press (Business Monday, April 30). Retirement
Corporation of America. 2002. http://therea.com/
Schultz, E.E. 1999. "Problems with Pensions: What You
Don't Know about the New Cash-Balance Retirement Plans Can Hurt
You," Wall Street Journal (November 8).
Smyth, A. 2006. "Survey Says Many Americans Relying on Social
Security too much," http://www.theinsurancepoicy.com/2006/11/survey
says many americans-rel.html
U.S. Social Security Administration. 1998. Social Security:
Retirement Benefits. Washington, DC.
U.S. Department of Labor. 2000. "Coverage Status of Workers
under Employer Provided Pension Plans,"
http://www.dol.gov/ebsa/publications/99pensionreport.html
Contact Information
For further information on this article, contact:
Dr. Qingbin Wang, 205C Morrill Hall, University of Vermont,
Burlington, VT 05405
Phone: (802) 656-4564/Fax: (802) 656-1423
Email: gwang@uvm.edu
Qingbin Wang, The University of Vermont, Burlington, VT
Elizabeth Trent, The University of Vermont, Burlington, VT
Robert Parsons, The University of Vermont, Burlington, VT
Table 1. Descriptive Statistics of the Vermont Small Business
Retirement Survey
Retirement Plan Yes (n = 479) No (n = 349)
Continuous variables Mean S.D. (1) Mean S.D.
Age 51.65 10.00 51.70 12.07
Planned retirement age 63.93 7.16 64.83 9.85
Age started work 18.80 6.68 18.47 8.42
Household size 2.57 1.13 2.51 1.13
Years in business 17.71 11.39 17.63 13.38
Categorical variables Count % Count %
Gender
Male 330 68.9 238 68.2
Female 149 31.1 111 31.8
Marital/partner status
Single 80 16.7 85 24.4
Married 399 83.3 264 75.6
Education
Less than high school 19 4.0 30 8.6
High school graduate 103 21.5 129 37.0
Post secondary 97 20.3 82 23.5
College graduate 102 21.3 54 15.5
Post graduate 158 33.0 54 15.5
Industry
Agriculture 50 10.6 54 15.8
CMT2 96 20.4 63 18.5
Wholesale and retail 76 16.1 77 22.6
Services 111 23.6 89 26.1
P and F services (3) 138 29.3 58 17.0
Size of business
0-4 employees 412 86.0 317 90.8
5-19 employees 67 14.0 32 9.2
Interest in information (4)
Debt management 82 17.2 108 30.9
Investment 152 31.7 123 35.2
Money management 138 28.8 126 36.1
Retirement 149 31.1 132 37.9
Retirement Plan
Test
Total (N = 828) Statistic
Continuous variables Mean S.D. T-test
Age 51.67 10.91
Planned retirement age 64.30 8.40
Age started work 18.66 7.46
Household size 2.55 1.13
Years in business 17.68 12.27
Categorical variables Count % Ch-square
Gender
Male 568 68.6
Female 260 31.4
Marital/partner status
Single 165 19.9
Married 663 80.1
Education 53.33
Less than high school 49 5.9
High school graduate 232 28.0
Post secondary 179 21.6
College graduate 156 18.8
Post graduate 212 25.6
Industry 21.83
Agriculture 104 12.8
CMT2 159 19.6
Wholesale and retail 153 18.8
Services 200 24.6
P and F services (3) 196 24.1
Size of business 4.45 *
0-4 employees 729 88.0
5-19 employees 99 12.0
Interest in information (4)
Debt management 190 22.9 21.67 ***
Investment 275 33.2
Money management 264 31.9 4.95 *
Retirement 281 34.0
(1) S.D. = Standard deviation.
(2) Construction, manufacturing and transportation.
(3) Professional and financial services.
(4) The percentages are based on the number of
respondents, not the number of responses.
* p<.05, *** p<.001
Table 2. Retirement Plans of the Surveyed Small Business Owners
Percentage of Percentage of
Name of retirement plan Count 644 responses 463 respondents
Individual retirement 303 47.1 65.4
account (IRA)
SEP-IRA from present 136 21.1 29.4
position
SEP-IRA from a former 24 3.7 5.2
position
SIMPLE from present 58 9.0 12.5
position
SIMPLE from former 5 0.8 1.1
position
401k or 403(b) from 46 7.1 9.9
present position
401k or 403(b) from a 45 7.0 9.7
former position
Keogh plan from present 19 3.0 4.1
position
Keogh plan from a former 8 1.2 1.7
position
Total 644 100.0 139.0
Note: A total of 463 respondents have participated in at
least one of the retirement plans.
Table 3. Retirement Plans of the Respondents' Spouses or Partners
Percentage of Percentage of
Name of retirement plan Count 515 responses 370 respondents
Individual retirement 225 43.7 60.8
account (IRA)
SEP-IRA from present 43 8.3 11.6
position
SEP-IRA from a former 10 1.9 2.7
position
SIMPLE from present 32 6.2 8.6
position
SIMPLE from former 6 1.2 1.6
position
401k or 403(b) from 144 28.0 38.9
present position
401k or 403(b) from a 41 8.0 11.1
former position
Keogh plan from present 8 1.5 2.2
position
Keogh plan from a former 6 1.2 1.6
position
Total responses 515 100.0 139.1
Note: A total of 370 respondents indicated that their spouses or
partners have participated in at least one of the retirement
plans.
Table 4. Preference Rating for Methods of Receiving Financial
Management and Retirement Information (Rating scale: 1 = least
preferred to 5 = most preferred)
Mean
Method rating S.D. (1) Median (2) Mode (3)
Brochure 3.45 1.53 4.0 5.0
Direct mail 3.33 1.61 4.0 5.0
Magazine article 2.86 1.48 3.0 1.0
Internet web pages 2.30 1.46 2.0 1.0
Class at work 1.72 1.14 1.0 1.0
Class not at work 2.25 1.43 2.0 1.0
Individual session 2.93 1.65 3.0 1.0
(1) S.D. = Standard deviation of the rating
(2) Median = 50% above and 50% below
(3) Mode = Most frequently occurring
Table 5. Retirement Plan Participation of Business Owners
and Employer-Based Retirement Plan for Employees
Retirement plan of business owners
Yes No Total
Count % Count % Count
Employee retirement plan
Yes 106 12.8 4 0.5 110 13.3
No 141 17.0 188 22.7 329 39.7
No employee 232 28.0 157 19.0 389 47.0
Total 479 57.8 349 42.2 828 100.0
Note: A Chi-square value of 97.75 indicates that whether a business
offers an employer-based retirement plan to its employees is
significantly related to whether the business owner has
participated in at least one retirement plan.
Table 6. Logit Regression Results (Y=1 indicates having a
retirement plan and Y=0 otherwise)
Variable Definition B Exp(B)
Agri 1 for farm and agricultural -0.292 .747
business and 0 otherwise
Small 1 for businesses with 1-4 -0.767 *** .464
employees and 0 otherwise
Large 1 for businesses with more 0.061 * 1.063
than 9 employees and 0
otherwise
ConcSS 1 if concerned about social 0.616 * 1.852
security and 0 otherwise
Planprevjob 1 if has retirement from 2.765 *** 15.883
previous job and 0 otherwise
Yrworked number of years the individual 0.004 1.004
has worked
Married 1 for married and zero 0.246 1.279
otherwise
Educ Level of education 0.395 *** 1.485
Children number of children under 18 -0.089 .915
Female 1 for female and 0 for male -0.21 .810
Spouseplan 1 if spouse has a retirement -0.054 ** .948
plan and 0 otherwise
Workwork 1 if plan to work after -0.022 .978
retirement and 0 otherwise
Constant -0.432 .650
* Significance at the 0.10 level
** Significance at the 0.05 level
*** Significance at the 0.01 level
Table 7. Logit Regression Results (Y=1 indicates interest
in retirement information and Y=0 therwise)
Variable Definition B Exp(B)
Agri 1 for farm and agricultural 0.025 1.025
business and zero otherwise
Small 1 for businesses with 1-4 -0.250 .779
employees and zero otherwise
Large 1 for businesses with 10 or -0.330 .719
more employees and 0
otherwise
ConcSS 1 if concerned about social -0.782 * .458
security and zero otherwise
Planprevjob 1 if has retirement from -0.024 .976
previous job and zero
otherwise
Yrworked number of years the individual -0.019 *** .981
has worked
Married 1 for married and zero -0.041 .960
otherwise
Educ Level of education -0.122 * .885
Children number of children under 18 0.159 ** 1.173
Female 1 for female and zero for male -0.169 .845
Spouseplan 1 if spouse has a retirement 0.005 1.005
plan and zero otherwise
Workwork 1 if plan to work after 0.076 1.079
retirement and zero
otherwise
Retplan 1 for respondent with a -0.286 * .751
retirement plan and zero
otherwise
Constant 0.681 1.977
* Significance at the 0.10 level
** Significance at the 0.05 level
*** Significance at the 0.01 level
