Over the past decade, since 2012, at least 46 states have acted to implement a new program, study program options, or consider legislation to establish state-facilitated retirement savings programs. Today, 16 states and two cities have enacted programs for private sector workers.
One state that’s having a positive impact is Oregon, according to a recent post from the “Squared Away” blog published by the Center for Retirement Research at Boston College, which cited a recent study funded by the Social Security Administration.
At the end of May, the average balance in about 114,000 IRA accounts was $1,324, or $151 million total. On an individual basis that may not sound like much, but the typical employee enrolled in the OregonSaves program earns only $22,600. They also tend to work in high-turnover industries, like food service and healthcare, where constant job changes make it difficult to save consistently. When an Oregon worker finds another job in the state that person can take his or her IRA with them to the next employer.
Quoting from the SSA study, OregonSaves “has meaningfully increased employee savings.” Read the full article.