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

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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.