Webinar on May
16 With Review of Research and Update on State
Programs
WASHINGTON, May 15, 2024
/PRNewswire/ -- A new national survey of working-age Americans
from the National Institute on Retirement Security (NIRS) finds
strong support for new state-facilitated retirement programs that
are focused on helping workers without employer-provided plans save
for retirement. More than three-fourths of Americans (77 percent)
agree that state-facilitated retirement programs are a good idea.
And at a time when the nation faces deep political division on a
broad range of issues, support for state-facilitated programs holds
strong across party lines. Among Democrats, 86 percent agree these
retirement plans are a good idea, as do 74 percent of Republicans
and 71 percent of Independents.
These findings are detailed in a new issue brief from
NIRS, Americans' Views of State-Facilitated Retirement
Programs. The findings are based upon a national survey of
working-age Americans conducted by Greenwald Research. Read the
issue brief.
This issue brief is a supplement to a recent NIRS report,
Retirement Insecurity 2024: Americans' Views of Retirement.
Read the report.
Register for a webinar on Thursday,
May 16, 2024, at 3:00 PM ET
with a review of the report findings and an update on the state
programs.
"It's so encouraging that nearly every state is examining
options for expanding access to retirement plans for workers
lacking plans at their job," said Dan
Doonan, NIRS executive director and report co-author. "And
it is equally encouraging that Americans overwhelmingly agree that
the state plans are a good idea and that they would
participate."
"Looking ahead, it will be important to watch for additional
innovations as more states establish these savings programs and
existing programs grow. For example, states already are joining
together in multi-state compacts. It also will be interesting to
see if the state programs spur growth in 401(k) plan offerings,
especially given that SECURE 2.0 provisions will make it easier for
small businesses to offer retirement plans. Overall, actions at the
federal level coupled with the state-facilitated retirement
programs are steps in the right direction toward solving the
alarming retirement savings shortfall facing most working
Americans," Doonan said.
This research's key findings are as follows:
- The vast majority of Americans (77 percent) agree that
state-facilitated retirement savings programs are a good idea.
There is high support across party and generational lines, with
support highest among Millennials (79 percent).
- More than three-quarters of Americans (82 percent) say they
would participate in state-facilitated retirement programs, up from
75 percent in 2020. The support is consistent across party and
generational lines.
- Americans view many key features of state-facilitated
retirement programs as highly favorable, especially that the
programs would provide higher returns than other safe investments
in today's market (87 percent) and have low fees (86 percent).
This research comes as the U.S. faces a retirement savings
crisis, with about half of American households "at risk" of not
having enough to maintain their living standards in retirement
according to the Boston College Center
for Retirement Research. Employer-sponsored retirement plans are
the main vehicle for workers to save for retirement, and this is a
major contributing factor as U.S. employers are not required to
offer any type of retirement savings plan. According to the
Georgetown University Center for
Retirement Initiatives (CRI), about half of the private-sector
workforce (57 million employees) does not have access to an
employer-sponsored retirement savings plan.
Amid this crisis, states are taking action to address the
retirement challenges facing Americans by providing increased
access to retirement plans. Since 2012, every state except
Alabama has either enacted or
introduced legislation that would establish state-facilitated
retirement savings programs according to CRI. These
state-facilitated retirement programs offer a backstop for those
working in jobs where employers do not offer retirement plans like
a pension plan or 401(k) account. While each program is different,
the most popular type of plan that states are enacting
automatically enrolls workers in moderate risk, low-cost retirement
savings accounts referred to as auto-IRAs. Broadly, the
state-facilitated programs require private sector employers lacking
retirement plans to provide their employees with access to
retirement accounts through payroll deductions. While these
programs are overseen and administered by the state, investments
are managed by private companies. Workers in states that offer
these plans can access these retirement savings accounts when they
retire.
The National Institute on Retirement Security is a
non-profit, non-partisan organization established to contribute to
informed policymaking by fostering a deep understanding of the
value of retirement security to employees, employers, and the
economy as a whole. Located in Washington, D.C., NIRS membership includes
financial services firms, employee benefit plans, trade
associations, and other retirement service providers. More
information is available at www.nirsonline.org.
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SOURCE National Institute on Retirement Security