Investing Blog Roundup: Checking in on Oregon’s Auto-IRA

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.

Other Recommended Reading

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