In July 2017 Oregon began rolling out their OregonSaves program — essentially an auto-enrollment Roth IRA for employees who are not covered by employer-sponsored retirement plans.
The plan has a 5% default contribution rate, which by default increases by 1% per year until it reaches 10%. Employees can choose to change that rate or opt out of the plan entirely. The first $1,000 of contributions is essentially kept in cash, while further contributions go into a target-date fund.
Anek Belbase and Geoffrey Sanzenbacher at the Center for Retirement Research at Boston College recently took a look at how the plan is doing (e.g., how many potential participants actually participated, how many decided to increase or decrease the default contribute rate, etc.). It’s interesting reading about what might end up being a prototype for similar programs in other states.
- How Have Workers Responded to Oregon’s Auto-IRA? (pdf) from Anek Belbase and Geoffrey Sanzenbacher
Other Recommended Reading
- Rational vs. Reasonable from Morgan Housel
- Underestimated Challenges of Early Retirement from Chris Mamula
- My Year-End Review and Planning Regime from Dirk Cotton
- Section 199A Deduction Danger Zones from Steve Nelson
- The Fed Just Raised Interest Rates. Here’s What That Means for You from Tara Siegel Bernard
- ‘Stay the Course’: John Bogle Rates his Vanguard CEO Successors by Joseph N. DiStefano
- Unwinding An “Irrevocable” Life Insurance Trust (ILIT) That’s No Longer Needed from Michael Kitces
Thanks for reading!
What is the Best Age to Claim Social Security?
Read the answers to this question and several other Social Security questions in my latest book:
|Social Security Made Simple: Social Security Retirement Benefits and Related Planning Topics Explained in 100 Pages or Less|
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