Should government get (more) involved in retirement planning? Yes, if a new survey from The Pew Charitable Trusts is any indication. The organization found that workers generally like the state-sponsored auto-IRA concept.
Workers were asked about such programs both early in the survey and then after hearing critical details. The largely positive responses were little changed.
Only 13 percent said they would opt out of an auto-IRA.
Still, a quarter said they are unsure whether they would take part, although they would be automatically enrolled by default if they remained undecided, according to the survey, meaning they would start saving, but these workers might be more likely than others to opt out at a later date.
The findings mirror those of a similar AARP survey from March, which showed that showed an “overwhelming percentage” (84 percent) of American private sector workers strongly, or somewhat, agree that officials should back legislation to enable workers “to save their own money for retirement.”
AARP noted that its survey of nearly 4,000 workers aged 18 to 64 included a significant oversampling of African Americans, Latinos/as and Asian Americans. However, it found strong backing across all races, ethnicities and political ideologies for elected officials to clear the way for employee savings initiatives.
The total agreeing that lawmakers should support positive legislative action included 89 percent of Asian Americans, 86 percent of whites, 83 percent of African Americans and 78 percent of Latinos/as.
It an interesting add-on, it included 89 percent of self-identified liberals, 86 percent of moderates and 82 percent of conservatives.
Despite attempts by Congress and the President to block state and city-sponsored IRAS and 401ks, a number are moving ahead with retirement plans for private sector workers.
Backers of one of the most recent, in Oregon, launched OregonSaves, a Roth IRA, on July 1.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
Unfortunately, most people don’t understand the significant flaws with these programs. Hopefully they do not gain traction…the states mostly pushing these plans are the ones with terrible debt and upside down budgets…now we want them to manage our retirements. I don’t think so !