How Have Workers Responded to Oregon’s Auto-IRA?

IB#18-22

The brief’s key findings are:

  • Since many workers lack retirement plans at work, some states are setting up programs that require employers without a plan to enroll workers in an IRA.
  • Oregon was the first state to launch its auto-IRA and is now providing initial data on how workers and employers have responded.
  • On the positive side, a majority of workers are not opting out and are staying with the default contribution rate of 5 percent.
  • However, Oregon – as the first adopter – has also experienced delays in getting the payroll deductions up and running.
  • On balance, the program appears to be off to a promising start.