Does the requirement to offer retirement plans help workers save for retirement?

WILEY

A study published in Contemporary Economic Policy reveals significant benefits gained from the first implementation of the state-run retirement savings program in Oregon, known as OregonSaves, in 2017.

OregonSaves is available to Oregon workers whose employers do not offer a workplace retirement plan, self-employed individuals, and others. Businesses that do not offer retirement plans are required to automatically enroll employees, but workers can opt out at any time.

The analysis found that the program substantially boosted retirement savings among previously uncovered private workers. Investigators also found a 12% increase in Individual Retirement Account ownership among Oregon workers after the program’s roll-out.

Of particular note, there were considerable gains for lower-income, single, older workers, as well as workers of very small-size firms who previously lacked retirement savings plans.

“State-mandated retirement savings policies are an effective tool to narrow savings gaps, especially among low-income workers,” said corresponding author Ngoc Dao, PhD, of Kean University. “The Oregon model proves significant public policy gain in boosting savings for retirement among workers who lack access to workplace retirement savings plans.”

URL: https://onlinelibrary.wiley.com/doi/10.1111/coep.12648

 

Additional Information
NOTE: The information contained in this release is protected by copyright. Please include journal attribution in all coverage. For more information or to obtain a PDF of any study, please contact: Sara Henning-Stout, newsroom@wiley.com.

About the Journal
First published in 1982, Contemporary Economic Policy publishes scholarly research and analysis on important policy issues facing society. The journal provides insight into the complexity of policy decisions and communicates evidence-based solutions in a form accessible to economists and policy makers. Contemporary Economic Policy provides a forum for debate by enhancing our understanding of key issues and methods used for policy analysis.

About Wiley
Wiley is a knowledge company and a global leader in research, publishing, and knowledge solutions. Dedicated to the creation and application of knowledge, Wiley serves the world’s researchers, learners, innovators, and leaders, helping them achieve their goals and solve the world's most important challenges. For more than two centuries, Wiley has been delivering on its timeless mission to unlock human potential. Visit us at Wiley.com. Follow us on Facebook, Twitter, LinkedIn and Instagram.

---

JOURNAL

Contemporary Economic Policy

DOI

10.1111/coep.12648 

ARTICLE TITLE

Does a Requirement to Offer Retirement Plans Help Low-Income Workers Save for Retirement? Early Evidence from the OregonSaves Program