‘Auto IRAs’ are gaining steam in the states
Social Security will replace just 40 percent of pre-retirement income. Thus Congress and legislators in the 50 states have been busy in the past decade or more trying to find ways to goad people to save more. Enter the automatic IRA. Sarah O’Brien of CNBC gets readers up to date with this fairly new savings vehicle. Key points in the piece are these: 1.) Research shows workers are 15 times more likely to save for retirement if they can do so through their job, research shows; 2.) since 2012, at least 45 states have either implemented or considered legislation targeting the estimated 57 million people who lack access to a workplace retirement plan; 3.) three states — Oregon, Illinois and California — already have launched auto-IRA programs, which require most employers without retirement plans to enroll workers. Full article here.