State Automated Savings Programs

Throughout 2022, businesses in California, Illinois, and Oregon—three of the first states to implement statewide automatic enrollment programs to help private sector workers save for retirement—were still creating new private sector pension plans and shedding existing plans at rates slower than or largely comparable to the national average, according to an analysis of federal data.

Whether an employer provides its employees access to retirement savings hinges on the employer’s willingness or ability to sponsor a retirement plan. That’s especially true for small-business employers, usually defined as employers with 100 employees or fewer.

Participants in the Illinois Secure Choice retirement savings program appear to be showing modest improvements in their financial health, as measured by credit scores, perhaps alleviating concerns that setting aside a portion of each paycheck could lead workers to take on debt or use other savings for day-to-day expenses.

Labor Day became a federal holiday 130 years ago to celebrate the contributions of working women and men to America’s economy and well-being. And this year, Labor Day falls on the 50th anniversary of one of the most consequential laws for working Americans: the Employee Retirement Income Security Act (ERISA), a comprehensive reform of our country’s pension and employee benefits rules that provides important protections for retirees.

Retirement security depends on individuals saving for their future, but millions of Americans lack access to an employer-provided savings plan that might help them do so.

Retirement security depends on individuals saving for their future, but millions of Americans lack access to an employer-provided savings plan that might help them do so. Research shows that workers are 15 times more likely to save for retirement if they can set aside money through payroll deductions.