Slightly over half of those workers with access to employer-sponsored plans participated in 2001, according to the Congressional Research Service analysis of Census Bureau data. The study, released Friday, looked at 113 million workers ages 25 to 64 who earned money on the job, including full-time, part-time, private, public and self-employed.

"Our savings rates here are a disaster, and the study continues to beat home the crisis in savings overall," said Derrick Max, executive director of the Alliance for Worker Retirement Security, which represents business groups and favors overhauling Social Security to add personal retirement accounts. "The uncertain future of Social Security and the declining prevalence of traditional defined benefit pensions that provide a guaranteed lifelong annuity have put much of the responsibility for preparing for retirement on the shoulders of the worker," the report said.
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The 401(k) accounts were the most popular form of retirement savings, with one in three workers participating, the report said. About 19 percent owned an IRA or a Keogh account for self-employed workers. Almost 42 percent owned one or more retirement accounts.

For the 47.1 million workers with at least one retirement savings plan, the average account balance for a single employee was $45,960. For households, it was $71,040.

Of older workers ages 55 to 64, three out of four lived in households with retirement savings of zero to $56,000.

For older workers with savings, the average single-account balance was $71,910 and the household balance was $107,040.

The report "highlights the lack of retirement security millions of Americans face," said Rep. George Miller of Martinez, ranking Democrat on the House Workforce and Education Committee.

He cited the Treasury Department decision last week to pursue new government regulations that would help companies avoid age-discrimination lawsuits when they convert traditional pension benefits to different arrangements called cash-balance plans. (1)

Only about 30 percent of workers participate in traditional pension plans sponsored by employers that provide guaranteed annual benefits for life. Companies are cutting those benefits in favor of 401(k)s and cash balance plans because they are less expensive to administer.

"Enron Proofing Your Retirement Savings"

Once again it is up to each Individual to supplement their employer based plans (if they are participating in one) with their own IRA or Roth IRA account. The new contribution rates for IRA’s and Roths have been raised to $3500 for each eligible taxpayer in 2004 and increases by $500 each year until it reaches $5,000 in 2007. Taxpayers over age 50 can make $500 in Additional "Catchup" Contributions.

(1) From Associated Press  December 15, 2002.

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