"Many of the [low-income earners] that I've talked to really want me to sit down and explain how it worked for them, because they've just been excluded from a system like this for their whole careers. They want to know what the catch is."
"Studies show that participation in retirement plans increases by 50% when employees are automatically enrolled. Though the enrollment process was fairly simple-you had to go to a website, check a box, and then you would be enrolled-after two years, the Department of Treasury shuttered 30,000 newly opened accounts after determining it wasn't cost-effective."
The Trump administration announced a plan to establish retirement savings accounts for 54 million American adults lacking employer-sponsored retirement plans. Economists estimate this initiative could help the poorest 25% of Americans accumulate between $138,000 and $610,000 for retirement. However, low-income workers remain skeptical due to past failures, particularly Obama's MyRA program launched in 2015. Despite simple enrollment procedures, MyRA struggled with participation and the Treasury Department closed 30,000 accounts after two years, deeming it cost-ineffective. Automatic enrollment has proven to increase retirement plan participation by 50%, yet implementation challenges and worker distrust present significant obstacles to the new program's success.
#retirement-savings-accounts #low-income-workers #social-security #financial-security #myra-program-failure
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