Six years after its launch, OregonSaves—the nation’s first state-based effort to address the retirement savings crisis—has reached a significant milestone: $200 million saved for retirement.
The Oregon Retirement Savings Board and State Treasurer Tobias Read today announced that the state’s auto-enrollment retirement savings program hit the $200 million mark, and coincides with the rollout of the program to Oregon’s smallest businesses.
Launched in July 2017, OregonSaves has since expanded statewide in waves, starting with the largest employers, and culminating in this sixth (and final) group of employers; those with four or fewer employees. Oregon is the first state program to roll out to businesses of this size.
“Six years ago, Oregon made history. We started with the belief that everyone should have an easy way to save for their retirement at work. Every Oregonian now has that opportunity.”
Oregon Treasurer Tobias Read
“Six years ago, Oregon made history,” Read said in a statement. “We started with the belief that everyone should have an easy way to save for their retirement at work. Every Oregonian now has that opportunity. OregonSaves is delivering, and it’s more than a visionary Oregon idea—it has served as inspiration for other states—with more than $800M saved nationally for a more secure future.”
The program, championed by Read during his service in the Oregon Legislature, gives working Oregonians the option to save their own money for retirement via payroll deductions, without requiring employers to create plans or pay fees. The program was designed for workers without access to a defined contribution retirement plan like a 401(k) through their employer.
Early market research found that about half of Oregon’s workforce (one million workers) lacked access to a workplace-based retirement savings plan and would be eligible to participate in OregonSaves. And surveys by the AARP found that workers are 15 times more likely to save via payroll deductions.
Six years later, nearly 118,000 workers from more than 21,000 businesses statewide are saving with every paycheck in their own Individual Retirement Accounts. Approximately 75% of employees opt to stay in the program, saving an average of $171 per month.
OregonSaves was the first program of its kind in the U.S. and continues to lead a national movement. Now 13 states have followed Oregon with similar programs for helping uncovered workers. Earlier this month, Nevada lawmakers voted to establish the Nevada Employee Savings Trust, a state-run retirement savings program for private-sector employees, while legislators in Vermont and Pennsylvania also recently approved the creation of state-run automatic IRA programs.
Oregon continues to blaze a trail, including being the first state to welcome cannabis businesses, and opening its doors to the self-employed and gig economy workers—with more than 2,100 workers electing to independently take part—since 2018.
Continuing its efforts toward inclusivity for industries typically excluded from other programs and benefits, OregonSaves recently welcomed SEIU represented personal support workers, as well as homecare workers and personal care attendants to the program. These steps, today’s announcement states, demonstrates the program’s continued commitment to retirement savings accessibility for every worker in Oregon.
SEE ALSO:
• 3 More States Advance Auto-IRA Programs
• State-Mandated IRAs Not Crowding Out Private 401(k)s: Pew Research
• State IRA Programs Boost Private 401(k) Plan Adoption
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
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