X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Photo: AP

While automatic IRAs could have a significant impact on retirement readiness if they became universal, just how significant that impact might be would depend on several factors.

That’s according to new research from the Employee Benefit Research Institute (EBRI), which said that three major factors have to be considered when determining the effects of a universal auto-IRA plan:

  • age

  • default contribution rate

  • opt-out rate (the percentage of eligible employees who choose not to participate)

IRAs were designed to help people who don’t have an employer-sponsored retirement plan, particularly those who work at small companies, put money away for retirement in a tax-deferred account. However, most people who don’t have a retirement plan at work also don’t have an IRA.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

 

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.