EMF21-01: Does a Requirement to Offer Retirement Plans Help Low-Income Workers Save for Retirement? An Early Evidence from the Oregon Saves Program

Abstract

This study examines the first implemented state-run retirement program (Auto IRA) in Oregon (OregonSaves) in 2017 and provides early evidence of the significant impact on saving for retirement among uncovered private worker. Early results using SIPP and CPS-ASEC data show that the program was associated with a 27 percent increase in owning an auto- IRA (and 5 percent in pension at work-place) among Oregon workers compared to other states after the program was implemented in 2017. Important findings demonstrate that mandated retirement saving program is more likely to benefit lower-income, less-educated, and older workers who previously were not covered in retirement plans at work-place in private sectors.