The State Auto-Enroll IRA Plans are a good thing

Colorado is just another state that is offering a payroll deduction IRA program, forcing businesses to offer this program if they have five or more employees. I’m in favor of anything that offers increased retirement plan coverage.

Over 40% of private employees in Colorado don’t have access to a retirement plan at work, so this is a good thing. While many plan providers don’t want to compete against the government in the retirement plan space, I believe that many Colorado employers would rather join a multiple employer plan, a pooled employer plan, or their own single-employer plan because of the fear of having the state government involved in the retirement plan business. In states like Colorado, I believe this is an opportunity to get employers who would never get a plan, forced to start one because they don’t want to be enrolled in this state program. When it comes to retirement, I believe that many employers just have. The negative view of government and retirement savings, knowing full well the status of Social Security.

This entry was posted in Retirement Plans. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *