February 2025
More Private-Sector Workers Are Saving Thanks to State Auto-IRA Programs
Many private-sector employees lack access to a traditional pension, 401(k) or other retirement savings plan, leaving them unprepared for retirement.
To bridge this gap, a growing number of states have introduced automatic individual retirement account (auto-IRA) programs, making it easier for workers to save directly from their paychecks. These programs not only help employees build financial security but may also encourage more businesses to offer their own workplace savings plans.
According to the Georgetown University Center for Retirement Initiatives, auto-IRAs are now available in 11 states, including the Virginia’s RetirePath program. As of December 2024, these state programs have helped more than 965,000 private-sector workers collectively save $1.8 billion for retirement.
While anyone can open an IRA on their own, many workers don’t take that step—often due to inertia or uncertainty. Auto-IRAs remove those barriers by enrolling employees automatically, making it easier to save for the future.
These programs are making a real difference, but the retirement savings gap in America remains vast. Millions of workers still lack access to a workplace savings plan, and many retirees worry they haven’t saved enough. While auto-IRAs won’t close the gap overnight, they are a meaningful step forward—helping more people build financial security, one paycheck at a time.
Want to learn more? Explore insights from the Georgetown University Center for Retirement Initiatives.
