State-run retirement programs, including automatic individual retirement accounts (IRAs), are expanding access to retirement savings, with total assets nearing $2 billion. However, a new study from the Georgetown University Center for Retirement Initiatives (CRI) highlights that significant access gaps remain, as 47% of U.S. private sector workers\u2014around 59 million individuals\u2014lack access to employer-sponsored retirement savings plans.<\/p>\n
The study reveals that access to retirement plans varies by employer size, with smaller firms being the least likely to offer coverage. Nationally, the Georgetown CRI estimates that 63% of private sector workers at small firms\u2014those with fewer than 50 employees\u2014do not have access to workplace retirement savings, compared to only 34% at larger firms. Furthermore, an additional 23.4 million gig economy workers also lack access to employer-sponsored retirement plans.<\/p>\n
The Georgetown CRI argues that state-facilitated auto-IRA programs can help bridge these gaps by requiring private employers to provide access to state programs for employees who would otherwise have no workplace-linked retirement savings options. Previous research has indicated that state retirement program mandates can encourage firms in those states to establish their own retirement savings plans.<\/p>\n
Currently, state-facilitated programs have been adopted in 20 states and potentially could provide coverage for approximately 20.6 million workers in those states who currently lack access.<\/p>\n
Among U.S. states, Florida has the highest percentage of private sector workers\u201459%, or about 4.97 million employees\u2014who lack access to employer-sponsored retirement plans. Additionally, 2.33 million gig workers in Florida also face this lack of access, and 73% of small business employees in the state do not have workplace retirement options.<\/p>\n
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