From CNBC:

Summary 1:
Approximately 48% of Americans lack access to a pension or 401(k)-type plan at work. However, states have been implementing “auto-IRA” programs to fill the gap, with seven states already launching such programs by the end of 2023.

Summary 2:
Auto-IRA programs allow workers to save for retirement by automatically contributing a portion of their earnings to state-sponsored IRAs. More than 800,000 workers participate in these programs, saving an average of $165 a month.

Summary 3:
The shift away from pensions has led to inadequate retirement savings for many Americans, with projections showing a shortfall in sustainable retirement income for most. The aging U.S. population and declining working-age households further compound the issue, creating financial stress for states.

Summary 4:
Lack of 401(k) access disproportionately affects certain groups, including those who work for small businesses, lower-income workers, minorities, and women. Auto-IRA programs aim to overcome procrastination and serve as emergency funds, but they have some drawbacks such as lower contribution limits and no employer match.



Read more: State-run ‘auto-IRA’ programs aim to close retirement savings gap