Those Employed At “ESOP” Businesses Have Far More Savings, Expect To Retire Earlier Than Their Peers, Survey Finds
September 24, 2019
Those Employed At “ESOP” Businesses Have Far More Savings, Expect To Retire Earlier Than Their Peers, Survey Finds
Washington, D.C. – Today, the Employee-Owned S Corporations of America (ESCA) released the findings of new research by John Zogby Strategies that shows millennials working at employee-owned companies are far better prepared for retirement than other working millennials.
According to the survey, two-thirds of millennials working at “ESOP” companies expect to retire at or before age 65, twice the number of millennials at non-ESOP companies. Moreover, 56 percent of millennial workers at ESOP companies had at least six months’ salary saved for retirement, while 66 percent of millennials at non-ESOP companies had no savings at all. These striking findings are particularly important as research increasingly shows millennials generally are not financially prepared for retirement.
“We’ve long known that ESOP companies offer tremendous benefits to their employees: they are more resilient during recessions, better prepare workers for retirement, and create positive workplace atmospheres. What’s striking about this new data is that we can see the true impact on a generation of workers we know has struggled more to feel financially secure, and that working for an employee-owned business gives millennials far more certainty about their financial futures.”
Cimpl, who is also CFO of MMC Corp, a 100% employee-owned company headquartered in Overland Park, KS added, “This survey underscores how important it is for policymakers to advance measures in Washington that will create more ESOP-owned companies, and more retirement security for millennials.”
In addition to noting that they have better retirement savings, millennial employee-owners also reported feeling much more positive about their jobs. Eighty-one percent reported having a personal stake in the company’s success and 72 percent said they saw opportunities for their own growth in the business, compared to 41 percent and 50 percent, respectively, for their peers in other businesses.
Other key findings from the survey include:
This survey was conducted in July and August 2019 and surveyed 402 non-ESOP and 203 ESOP millennial and Gen Z employees. To review the full survey results, click below.