Labor Landscape
Some 56 million employees at various work environments across the U.S. are unable to save via a retirement plan through their jobs, according to analysis from the Pew Charitable Trusts.
And while these employees can in principle save money on their own, many are forced to prioritize putting food on the table and paying bills in the present over building a nest egg for the future, the study found.
For example, Westmoreland County’s board recently rescinded a policy that allowed nonunion employees to receive health benefits after retirement, a move officials said could save taxpayers up to $3.5 million annually. The commissioners voted to eliminate the program, which allowed retirees to buy into the county’s health coverage after leaving the payroll.
The move will only impact new employees; nonunion workers on the payroll before January 1 will still be eligible to receive the benefit. Nonunion workers were the last group of county employees eligible for the post-retirement health care benefit.
According to the county’s human resource office, this policy change had previously been incorporated into labor deals with the county’s bargaining units between 2007 and 2024. Currently, about 30 percent of the county’s more than 1,700 employees are not members of a union and remain eligible for the benefit. The benefit allows the county to split the cost of health insurance evenly with retired employees until they turn 65.
Last year, the county paid $28 million in health care benefits for employees – a figure expected to exceed $30 million in 2026.
“I think you are seeing more of this kind of situation as business and government leaders struggle to brace for long-term financial struggles,” said Kurt Wiss, a retired financial consultant from Pittsburgh.
The survey findings underscore the widening divide between the retirement haves and have-nots, with almost 30 percent of Americans over age 59 lacking any savings or pension plans to fall back on when they stop working. Employer-sponsored accounts like 401(k)s can help workers save because the money is taken out of paychecks automatically on a pre-tax basis, while many employers also provide a company match, which helps boost savings.
But experts point out that the decline of traditional pension plans significantly impacts retirement security. Employers are increasingly favoring contribution plans over traditional pensions due to rising costs, management complexities and market volatility.
Wiss said annuities and diversified retirement strategies are essential for financial stability, allowing workers to secure guaranteed incomes and mitigate risks associated with retirement savings.
Financial consultants report that the pivot away from defined pension plans began in earnest in the 1980s, and accelerated in the decades that followed. For employers the rationale was clear; pension plans are expensive, difficult to predicts and require long-term commitments. Today, only about 15 percent of private-sector workers have access to a pension plan at all, and participation rates are lower, according to the Bureau of Labor Statistics.
