Auto-Enrollment Retirement Plans for the People: Choices and Outcomes in OregonSaves
28 Pages Posted: 29 Jul 2020
Date Written: July 21, 2020
Insuring retirement security is an important challenge for our aging society, and many policymakers are seeking ways to help individuals save more for retirement. The state of Oregon recently launched an auto-enrollment retirement savings program for private sector workers who lack access to workplace retirement plans; many of these workers are lower-paid employees working at smaller firms. Our paper investigates early results from the OregonSaves program using data through June 2019. We find that OregonSaves is serving firms across many industries, including food services, health care, retail trade, and agriculture. In June 2019, approximately 24,000 contributing participants deposited an average of $110 per month, or about 5% of their pay, which is the default savings rate. To date, over 40,000 individuals have accumulated combined assets over $22.7 million. We also find that OregonSaves has provided access to workplace retirement accounts for employees of small to mid-sized firms (average firm size 36 employees), with participating employees’ earning an average of $2,182 per month.
Keywords: Retirement, pension, government retirement plan, workplace retirement plan, saving for retirement, low-paid employees
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