Americans haven’t saved for retirement. These states are creating automatic savings plans
By Kevin Hardy, Stateline.org
Worried about large numbers of workers without a nest egg, Nevada this month launched a new retirement program for private sector workers who lack access to one.
The program requires employers with six or more employees to participate — unless they already sponsor an employee retirement plan.
Employees, who can opt out, are automatically enrolled in an Individual Retirement Account, or IRA, through regular paycheck deductions.
Nevada State Treasurer Zach Conine hopes the new program, created by lawmakers in 2023, will boost financial literacy and ultimately reduce state costs on social services as more people save for retirement. He said about 500,000 workers were expected to be eligible under the plan — nearly a third of the state’s civilian labor force of 1.68 million.
“We don’t care broadly if someone stays on the Nevada plan or goes out and gets their own retirement savings plan,” said Conine, a Democrat who is running for state attorney general. “We care that people are saving for retirement.”