NAIFA Policy Director Maeghan Gale testified to Washington state lawmakers that ample private-sector options are available for employers who want to set up retirement plans for their workers or for employees who want to prepare for retirement on their own. Washington lawmakers are considering a feasibility study for a potential state-facilitated Auto-IRA program.
According to the Seattle Times, Gale testified, “We do not believe that the state-run retirement programs effectively address the barriers keeping more from saving. Nor do we feel there is a significant lack of access to retirement planning that would justify these programs.”
She noted that state-run plans in places like California have seen fewer enrollees and lower savings amounts than state officials expected.
NAIFA strongly supports efforts to encourage Americans to better prepare for retirement. However, the lack of financial education is a more significant barrier to retirement planning than a lack of available planning options.
The SECURE 2.0 legislation, which became law late last year, provides greater incentives for businesses to provide retirement plans to their employees and for individuals to prepare for retirement. It even further negates the need for state-run plans.