More Than 1 Million Americans Now Enrolled in Auto-IRA "Work and Save" Programs

More Than 1 Million Americans Now Enrolled in Auto-IRA Programs
Oregon led the way in helping workers save for retirement, launching OregonSaves in 2017

Portland, OR—More than one million private sector workers nationwide have enrolled in state retirement savings programs, a major milestone in the effort to address the nation’s retirement savings challenges. These options allow employees whose workplaces do not offer retirement plans to automatically contribute a portion of their paycheck to a retirement savings account.

In Oregon, the OregonSaves program has enabled thousands of workers to save for their futures. Oregon State Treasurer Elizabeth Steiner noted the program’s impact on financial resilience. "When we launched OregonSaves, we believed that everyone — no matter where they work — should have a simple, automatic way to save for the future,” she said. “Oregon is proud to lead the way as the first state in the nation, first led by former Treasurer Read, to put this idea into action, and now, reaching one million savers nationwide is a powerful testament to the impact that vision can have on financial wellbeing.”

Auto-IRA and other state-facilitated retirement options now operate in 20 states, with additional states at various stages of implementation. These programs are free to employers and designed to be easy for businesses and workers alike.

AARP Oregon advocacy led to the establishment of OregonSaves in 2017. It became the nation’s first state-based effort to address the retirement savings crisis by ensuring all private sector workers have savings opportunities. “These options work because they make saving easy,” said Bandana Shrestha, AARP Oregon State Director. “OregonSaves has empowered over 118,000 workers to start building their retirement security. These workers—many of whom are saving for the first time—have saved more than $300 million for their future, which means more individuals have dignity and choice as they age.”

According to AARP research, nearly half of American workers in the private sector ─ 56 million people ─ still lack access to a retirement plan through their employer. Small businesses are especially likely to not have an employer-based retirement option in place. Auto-IRA programs can help close this retirement savings gap; they don’t charge fees to employers and are designed to be simple for both employers and employees to use.

“Thanks to state action, over a million Americans who were previously unable to save for retirement through their job are now doing that, though too many hardworking people are still left behind,” said Nancy LeaMond, AARP Executive Vice President and Chief Advocacy & Engagement Officer. “Now state leaders and Congress must work to ensure every American worker has access to a retirement savings option at work where they can easily save for their future.”

AARP has been a leading advocate for these options, working at both the state and federal levels to expand access to retirement savings. AARP has endorsed proposed federal legislation, including the bipartisan Retirement Savings for Americans Act and the Automatic IRA Act, both of which would help improve retirement security for American workers.

About AARP Oregon: AARP Oregon empowers people aged 50 and older to choose how they live as they age, advocating for policies that improve the lives of older adults and their families. Learn more at: aarp.org/or