Posted 2/25/2024, 12:03:56 PM
Auto-IRA Retirement Programs Reach Over 800,000, Yielding $1 Billion in Savings
- 8 states have set up automatic retirement savings programs that have enrolled over 800,000 workers who have collectively saved over $1 billion
- These "auto-IRA" programs automatically enroll workers into Roth IRAs funded through payroll deductions if their employer doesn't offer a retirement plan
- Auto-IRAs target workers less likely to save for retirement on their own - lower-income, part-time, hourly workers
- Around 70% of auto-enrolled workers stay in the programs and contribute to retirement savings
- Auto-IRAs help small businesses that previously couldn't afford to offer retirement plans, improving recruitment and retention