State Auto-IRAs Reach $2 Billion in Assets
Over one million workers have saved more than $2 billion with state-run automatic individual retirement accounts (IRAs).
The milestone was recorded by the Pew Charitable Trusts, which analyzed savings from private sector workers across 12 state-sponsored retirement plans in the U.S. It shows rapid growth in auto-IRA assets, in which the plans initially took six years to reach one billion but just 18 months to total $2 billion dollars.
“This rapid growth stems from better-than-average market performance, a 25% increase in saver accounts, and higher average savings rates as programs mature,” wrote Kim Olson, a senior office with Pew’s retirement savings team.
States are also quickly adopting auto-IRA plans for workers without retirement plan access. Five new states—Delaware, Maine, New Jersey, Vermont, and Nevada—have all debuted programs in 2024 and 2025.
With recent adoption by state governments, more businesses are implementing the programs. More than 250,000 employers have registered to incorporate an auto-IRA into their workforce, and “tens of thousands more” have elected to establish their own 401(k) or other qualified retirement plan, Olson wrote.
Such widespread growth has inspired innovation in the automatic IRA space, Pew reports. In 2023, Colorado SecureSavings implemented its interstate “Partnership for a Dignified Retirement” program, aimed towards reducing administrative costs while shortening drawn-out implementation processes for other states. In using this program, new plans can build upon previous ones to “avoid lengthy request-for-proposal and contracting processes.”
Maine, Delaware, and Vermont joined Colorado’s partnership in 2024, and have already exceeded $144 million in assets from over 100,000 savers. Nevada and Minnesota are set to join this year.
Other partnerships, like Rhode Island’s RISavers program and Connecticut’s MyCTSavings program, have spurred advancements in timing and accessibility. Rhode Island passed legislation in 2024 and launched its pilot program in 2025. “These partnerships prove that states can establish a retirement program quickly, providing residents with access to retirement savings accounts in a relatively short period of time,” Olson commented.
Further growth is anticipated in the months and years ahead. New York is currently in the recruiting process for its New York Secure Choice Savings Program (SCSP) and is expected to launch later this year, while Hawaii is expected to launch its retirement savings program in 2026 or 2027. Washington is also on track to kickstart its program in 2027.
Ten additional states have contemplated legislation on the programs, Pew notes, including Alaska, Arizona, Arkansas, Georgia, Indiana, Massachusetts, Mississippi, Pennsylvania, Tennessee, and West Virginia.
SEE ALSO:
Delaware the Latest to Offer State Auto-IRAs
Rhode Island, Connecticut Partner on Auto IRAs
Washington Joins States Enacting Auto-IRAs
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
