@article {Harris27, author = {Timothy F. Harris and Kenneth Troske and Aaron Yelowitz}, title = {How Will State-Run Auto-IRAs Affect Workers?}, volume = {6}, number = {2}, pages = {27--33}, year = {2018}, doi = {10.3905/jor.2018.6.2.027}, publisher = {Institutional Investor Journals Umbrella}, abstract = {In order to encourage savings among workers without access to employer-sponsored retirement plans, several states have proposed defaulting workers into state-run individual retirement accounts known as Auto-IRAs. Plans such as OregonSaves automatically enroll workers and, by default, increase their contributions over time. Given low opt-out rates, these policies have the potential to increase retirement savings for workers without access to employer-sponsored plans. Using survey data, we find that over 24 million workers could automatically be enrolled in an Auto-IRA, if enacted on a national scale. Nonetheless, these policies have the potential to adversely affect individuals with debt and current financial difficulties who do not actively opt-out. One-third of potentially affected workers hold credit card debt with an average balance exceeding $5,000. Furthermore, approximately 15\% of potentially affected workers have difficulty meeting basic needs.TOPICS: Pension funds, legal/regulatory/public policy, retirement}, issn = {2326-6899}, URL = {https://jor.pm-research.com/content/6/2/27}, eprint = {https://jor.pm-research.com/content/6/2/27.full.pdf}, journal = {The Journal of Retirement} }