S Corp ESOPs.pdf

S Corporation ESOPs provide higher retirement savings:
- ESOP participants have an average total retirement balance of $170,326, more than twice the national average of $80,339.
- Lower-wage ESOP employees (less than $25,000/year) have an average retirement savings of $55,526, double the national average of $22,447 for similar workers.
- Workers nearing retirement have a median account balance of $147,522 in their ESOP and $98,974 in non-ESOP plans, compared to 35% of national workers with no retirement savings.
- Millennials at S ESOP companies have a median ESOP account balance of $22,588 and a median non-ESOP balance of $11,239, while national millennials have zero median savings.
- Lower-wage employees at S ESOP companies have median account balances of $4,381 in their ESOP and $2,149 in non-ESOP plans, while 56% of national workers in this category have no access to retirement benefits.

S Corporation ESOPs offer additional benefits:
- 97% of respondent companies offer at least one other retirement plan in addition to the ESOP.
- These companies provide an array of benefits at higher levels than firms overall, contributing to retirement security.
- ESOPs are associated with reduced turnover, with respondent companies reporting quit and separation rates more than two times lower than national rates.

Demographics of respondent companies:
- Most companies are large (over 1,000 employees) and 100% owned by their ESOPs.
- Respondents self-selected to participate in the survey and may not be representative of all S corporation ESOPs.
- However, the demographics of respondents vary across industry, size, location, and performance category.