Investing in America: Why automatic retirement savings are the future
Key takeaways
- But decades of efforts to promote saving in IRAs show that most ordinary households are unaware of the option or are held back by inertia.
- To extend retirement saving to all workers, Trump should now support federal legislation built on the concept of automatic IRAs, which are already being successfully implemented in 17 states.
- Between one-third and one-half of the U.S. private-sector workforce are not covered by an employer-sponsored retirement plan.
Why this matters: political developments that affect policy direction and public trust.
But decades of efforts to promote saving in IRAs show that most ordinary households are unaware of the option or are held back by inertia.
To extend retirement saving to all workers, Trump should now support federal legislation built on the concept of automatic IRAs, which are already being successfully implemented in 17 states.
Between one-third and one-half of the U.S. private-sector workforce are not covered by an employer-sponsored retirement plan. Lower-income or high-turnover workforces tend not to demand retirement plans. Also, small-business owners lack economies of scale to minimize plan costs. They may fear the added responsibilities of plan sponsorship and resist the extra demands on their limited time.