Why States Are Offering Workers at Private Companies Access to I.R.A.s

Published On Nov 15, 2024, 9:00 AM

States are implementing automatic individual retirement accounts (auto-I.R.A.s) to help private-sector employees save for retirement in response to the decline of traditional pensions. These plans, which automatically enroll workers and deduct a portion of their pay for retirement savings, are currently available in 10 states, including New Jersey and Delaware, where over 930,000 accounts have been opened, totaling $1.7 billion in savings. The initiative aims to encourage more savings among Americans, particularly in small businesses without existing retirement plans.