Eight States Announced To Have Implemented Automated Savings Programs To Aid Workers With Their Retirement

Automated savings programs have been implemented in eight states to help workers regarding their retirement plans.

These automated savings programs have been implemented in states such as Colorado, California, etc. (Photo: Due)

Automated Savings Programs

Eight states have implemented automated savings programs that automatically enroll workers in retirement savings accounts. These automated savings programs encourage them to save for their golden years.

These automated savings programs have enrolled over 800,000 workers and saved over $1 billion collectively since 2017. Workers can opt out of the automated savings programs but most choose to stay in.

Critics of the said automated savings programs argue that workers would be better off saving for retirement on their own. But many Americans do not have access to retirement plans through their jobs and the automated savings programs could come in handy.

According to a published article by USA Today, automated savings programs have been established in Oregon, Illinois, California, Connecticut, Maryland, Colorado, Virginia, and Maine since 2017 to address this issue.

A Reintroduced Bill

In a published article by Pensions & Investments, Rep. Richard Neal has reintroduced a bill that would require businesses with 10 or more employees to automatically enroll their workers in IRAs or 401(k)-type plans if they do not offer a retirement plan.

The goal is to help economically struggling workers save for retirement. The bill would require employers to either set up a retirement plan or facilitate auto IRAs, with contribution rates starting at 6% and automatically increasing annually.

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