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The Positive Impact of State-Based Auto-IRA Programs: DC Pension Geeks

State Auto-IRA Plans

What's in the episode?:

How do you expand retirement plan coverage for workers at scale (close the coverage gap), leverage the behavioral benefits of payroll deduction, and not place an undue burden on employers? One solution is increasingly effective—state-facilitated plans.

Retirement policy veteran John Scott, Project Director, Retirement Savings at The Pew Charitable Trusts, joins American Retirement Association CEO Brian Graff to discuss how the programs are performing, their impact and the surprising stats fueling their growth.

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John Towarnicky
2 weeks 2 days ago
There are much better solutions - solutions that would reach gig workers, employees who are eligible for their employer-sponsored plan but do not participate, employees who are not yet eligible for their employer-sponsored plan, those who are in a class that is not eligible for their employer-sponsored plan, and those who are covered by a non-contributory pension plan but don't stick around long enough to vest. The state auto IRAs introduced to date are suboptimal. In the first couple of years, more than half of participants have an account balance that is less than their contributions - including those who have yet to make a withdrawal. Consider: