Washington, D.C. – Today, the Employee-Owned S Corporations of America (ESCA) released new John Zogby Strategies survey findings that show retirees who worked at employee-owned S corporations are far more confident about their financial security than average American retirees.
Economic research has long found that employees of employee stock ownership plan (ESOP) companies have greater retirement savings, earn higher wages, and stay in their jobs far longer than the average American worker. This new survey demonstrates the tremendous advantages ESOP retirees enjoy, especially when compared to their non-ESOP retiree counterparts.
“Employee ownership not only empowers workers during their careers, but it also provides them with robust retirement savings – a stark contrast from the average American retiree,” said ESCA Chairman David Cimpl, Chief Financial Officer at MMC Corp, a 100 percent employee-owned company headquartered in Overland Park, KS. “This new survey data from John Zogby Strategies helps illustrate the picture that we who work at ESOP companies already know – ESOP workers are far better informed about saving appropriately for retirement and can enjoy peace of mind by knowing they’ll be able to care for themselves and their families for years to come.”
Key findings from the survey, which sampled 621 S ESOP and non-ESOP retirees, include:
- ESOP retirees are nearly twice as likely to feel they have enough money to live a comfortable lifestyle in retirement. Ninety-one percent of ESOP retirees answered they are confident about a comfortable retirement compared to only 49 percent of their non-ESOP retiree counterparts.
- Non-ESOP retirees are three times more likely than ESOP retirees to have major financial concerns. Thirty percent of non-ESOP retirees responded that they have a major financial concern, which was only shared by 10 percent of ESOP retirees.
- ESOP retirees feel better informed when making retirement decisions. Ninety-three percent of ESOP retirees said they had sufficient knowledge to prepare for retirement compared to only 65 percent of non-ESOP retirees.
- Almost all ESOP retirees say their retirement savings are sufficient to meet their needs. Eighty-nine percent of ESOP retirees responded that their savings are sufficient, while only 48 percent of non-ESOP retirees said the same. Twenty-seven percent of non-ESOP retirees said they did not have enough savings to meet their retirement needs.
“These numbers speak for themselves. Workers at ESOP companies experience the tremendous benefits of employee-ownership and that results in more confidence about their financial future. That confidence is especially impressive when compared to the average American worker who is far less prepared and far more concerned about financial security in retirement,” said John Zogby.
The full report can be found here.