Houston, Atlanta, Kansas City, Miami...we have a problem. The problem is the lack of employer-sponsored retirement plans for about half the nation's private-sector workers. Because so many workers do not have access to a retirement plan, reports the Center for Retirement Research, one-third of households will end up with no retirement plan coverage at all during their worklife. Many others will have inadequate savings because they moved in and out of coverage as they changed jobs over the years.
Although the Obama administration proposed "automatic IRAs" in 2009, federal legislation has yet to be enacted. Consequently, some states (California, Connecticut, Illinois, and Oregon) are taking the initiative and mandating automatic IRAs. The Center for Retirement Research report examines these state initiatives and other attempts to broaden retirement plan participation. "A national Auto-IRA plan would be a much more efficient way to close the coverage gap," the report concludes.
Source: Center for Retirement Research at Boston College, State Initiatives to Cover Uncovered Private Sector Workers
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