Pew Applauds Introduction of Automatic IRA Legislation, Urges Bipartisan Support

Navigate to:

Pew Applauds Introduction of Automatic IRA Legislation, Urges Bipartisan Support

Washington, DC -  Eleni Constantine, director of the Pew Health Group's financial security portfolio, issued the following statement in support of legislation creating an “automatic IRA,” S. 3760, introduced by Sen. Jeff Bingaman (D-NM) and H.R. 6099, introduced by Rep. Richard Neal (D-MA).  Under these bills, employees who do not have a 401(k) plan with their present employer would be enrolled in an Individual Retirement Account (IRA)  unless they decide to opt out.   The research and analysis of Pew's grantee, the Retirement Security Project, identified the automatic IRA as a key solution to the gap in Americans' retirement savings.

“We applaud Senator Bingaman and Congressman Neal for their leadership in introducing this important legislation.  These bills represent a significant move towards strengthening retirement security for workers across the nation. An automatic IRA can provide a simple, low-cost way for working Americans, even those without 401(k) plans, to save for retirement. By combining two familiar and well-tested savings vehicles, the IRA savings account and the opt-out model of the 401(k) savings plan, the passage of this legislation will vastly increase access to retirement savings programs.

“Roughly half of all working Americans (78 million people) are employed by companies that offer no retirement plan.  The Auto IRA will allow 90 percent of all employees the opportunity to save for retirement through tax-deferred payroll deductions, substantially increasing their savings capacity, according to the Retirement Security Project.

“The concept of automatic IRA has repeatedly received bipartisan backing – now is the time for both parties to again put their support behind this common-sense proposal and provide access to retirement savings for millions of Americans.”

Composite image of modern city network communication concept

Learn the Basics of Broadband from Our Limited Series

Sign up for our four-week email course on Broadband Basics

Quick View

How does broadband internet reach our homes, phones, and tablets? What kind of infrastructure connects us all together? What are the major barriers to broadband access for American communities?

Pills illustration
Pills illustration

What Is Antibiotic Resistance—and How Can We Fight It?

Sign up for our four-week email series The Race Against Resistance.

Quick View

Antibiotic-resistant bacteria, also known as “superbugs,” are a major threat to modern medicine. But how does resistance work, and what can we do to slow the spread? Read personal stories, expert accounts, and more for the answers to those questions in our four-week email series: Slowing Superbugs.