Does a Requirement to Offer Retirement Plans Help Low-Income Workers Save for Retirement? Early Evidence from the OregonSaves Program
43 Pages Posted: 25 Sep 2023
Date Written: August 1, 2023
This study examines the first implementation of the state-run retirement savings program in Oregon, known as OregonSaves, in 2017. It offers early insights into the substantial impact of this mandated program on retirement savings among previously uncovered private workers. Results from difference-in-difference models using SIPP data indicate a 12 percent increase in Individual Retirement Account (IRA) ownership among Oregon workers after the program’s roll-out. Notably, the study discerns significant gains for lower-income, single, and older workers, as well as workers of small-size firms who previously lacked retirement savings plan coverage. Findings also suggest additional savings resulting from the mandate.
Keywords: state-mandated retirement savings plan, auto-IRA enrollment, peer effects
JEL Classification: D1, H2, H3, H7
Suggested Citation: Suggested Citation