Eight states have automatically enrolled hundreds of thousands of workers in retirement savings accounts, all but compelling them to deduct money from their paychecks to spend in their golden years.
Retirement researchers applaud the new “automated savings” programs that have sprung up from California to Maine since 2017. By one analysis, from the Pew Charitable Trusts, the state initiatives have enrolled more than 800,000 workers, who have collectively saved more than $1 billion since 2017. Workers are free to opt out of the plans, but most choose to stay in.
“It’s the most exciting thing we’ve seen happen in this space in a long time,” said Jean-Pierre Aubry, associate director of state and local research at the Center for Retirement Research at Boston College. “It has the potential to really change the game.”
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