State Auto-IRA Programs: The Keys to Financial Self-Sufficiency

The brief’s key findings are:

• State auto-IRA programs for private sector workers are intended to pay for themselves.
  
• This goal is achievable in the long run, but auto-IRAs will incur losses initially.
  
• The keys to financial self-sufficiency are to:
  • keep per-account costs low;
    
  • set meaningful participant contribution rates; and
    
  • charge higher fees initially or finance start-up costs over a longer period.