cnn.com
Auto IRAs Boost Retirement Savings
Auto IRAs are helping to address a retirement savings crisis by automatically enrolling workers in retirement plans, boosting savings for those most likely to fall behind.
English
United States
Us PoliticsLabour MarketLifestylePolicyEconomicsRetirementInvestmentsSavings
AarpGeorgetown Center For Retirement InitiativesPew Retirement Savings ProjectGusto
John Scott
- What are auto IRAs and how do they help address the retirement savings crisis?
- Auto IRAs, state-sponsored programs automatically enrolling workers without employer-sponsored plans, are helping to address this crisis by boosting retirement savings, particularly for low-to-middle-income earners.
- What are the benefits of auto IRAs, particularly for low-to-middle-income earners?
- Gusto's analysis shows a 55% increase in the savings rate for low-to-middle-income earners in states with auto-IRAs, resulting in an extra $150 of monthly retirement income.
- How many states have enacted auto IRA programs, and how do these programs typically work?
- Seventeen states have enacted auto IRA programs, with ten currently active, automatically enrolling employees at a preset savings rate (usually 5%) and allowing them to adjust or opt out.
- How many US private sector workers lack access to a retirement plan through their employer?
- Approximately 57 million US private sector workers lack access to a retirement plan through their employer, creating a significant retirement savings crisis.
- What is the potential impact of auto IRAs on employers offering their own retirement plans?
- While it is unclear why, some evidence suggests auto IRAs might encourage more employers to offer their own retirement plans, possibly due to economic improvement or recent legislative changes.