The Total View - (Page 17) Salary Deferral Rates The Age, Stage, & Earnings Factors Naturally, salary deferral rates were higher for employees who are closer to their retirement years, earn more, and had more years of service with their employers. Likewise, certain investment-savvy industries such as finance, insurance, and real estate tended to carry higher average deferral rates. The average pre-tax salary deferral rate remained consistent from 2005 at 7.16 percent. Average salary deferral rates also increased as age increased, with those aged 50-plus deferring at the highest rates and those under age 35 deferring at the lowest rates. Average deferral rates for participants located in the East and West regions were slightly higher than the deferral rates for participants in the Midwest and South regions. Deferral rates were highest in the finance, insurance, real estate and services industries and lowest in the retail and manufacturing industries. Age. Typically, average salary deferral rate increased with the age of the participant. 11% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 9.9% 10% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 9.5% 9.3% 9% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 8.4% 8.4% 8.6% 8% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 6.8% 6.7% 6.7% 7% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 6% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 5.7% 5.3% 5.1% 5% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 4% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 3% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 2% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 1% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 0% –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– <35 35-49 50-64 65+ Average Salary Deferral Rates by Participant Age 2004 2005 2006 17
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