What if every employee in America were automatically enrolled in an Individual Retirement Account?

In an ongoing study, researchers from Princeton University and the Treasury Department have analyzed just such a scenario.

Their conclusion: Not surprisingly, a national retirement savings plan would substantially raise the nation’s savings rate, especially for low-income workers.

If every worker were automatically enrolled in a retirement plan, the savings rate among low-income workers would double, from 21% to 40%.

Because fewer lower-income Americans save for retirement, a national savings plan could offer a potential solution to that challenge, the researchers say. Workers who retire with sufficient savings put less of a strain on social services.

Lee la nota completa en USA TODAY.

What if every employee in America were automatically enrolled in an Individual Retirement Account?

In an ongoing study, researchers from Princeton University and the Treasury Department have analyzed just such a scenario.

Their conclusion: Not surprisingly, a national retirement savings plan would substantially raise the nation’s savings rate, especially for low-income workers.

If every worker were automatically enrolled in a retirement plan, the savings rate among low-income workers would double, from 21% to 40%.

Because fewer lower-income Americans save for retirement, a national savings plan could offer a potential solution to that challenge, the researchers say. Workers who retire with sufficient savings put less of a strain on social services.

Lee la nota completa en USA TODAY.