With many Americans unsure and lacking confidence in their retirement plans, many states are looking into providing government-sponsored IRAs, or auto-IRAs, to private sector workers, research from the Pew Charitable Trusts finds.
Under state-sponsored IRAs, workers without access to an employer-sponsored retirement plan would see regular deductions from their paychecks put into an IRA managed by a private financial services firm. According to the Pew Charitable Trusts, the state’s role in the process would be choosing the financial services firm.
Among those without access to a retirement fund, about two-thirds support a state-sponsored plan. 73 percent somewhat or strongly support automatic enrollment. 68 percent of those without access to a retirement plan also supported automatic escalation of contributions.