Working Americans are wanting state-facilitated retirement programs to help them prepare for their future, finds new research today from the National Institute on Retirement Security (NIRS).
According to the findings from the organization’s new brief, “Americans’ Views of State-Facilitated Retirement Programs,” 77% agree that a state-run program is a good idea. This view is particularly backed by Millennials, who showed the highest support among all generations (79%).
Moreover, 82% of Americans said they would participate in state-facilitated retirement programs, a rise from 75% just four years prior in 2020. Among the key features that were highly favorable to respondents included higher returns (87%) and lower fees (86%).
NIRS’ research finds that such sentiment is held across all party lines, with 86% of Democrats, 74% of Republicans, and 71% of Independents showing strong support for state-wide retirement programs.
The number of government-facilitated programs has risen significantly in recent years, as federal and state regulators methodize retirement strategies for workers without employer-sponsored retirement plans. According to the Georgetown University Center for Retirement Initiatives (CRI), about half of the private-sector workforce, or 57 million employees, are without any access to an employer-sponsored retirement savings plan.
“It’s so encouraging that nearly every state is examining options for expanding access to retirement plans for workers lacking plans at their job,” said Dan Doonan, NIRS executive director and report co-author. “And it is equally encouraging that Americans overwhelmingly agree that the state plans are a good idea and that they would participate.”
Ideally, more plan sponsors would offer retirement benefits as a response to the increase in state-run programs, Doonan has stated in the past. New legislation offered by SECURE 2.0 should also incline employers to offer plans, as it eases the complex administrative process linked to retirement plan setup, he added.
“It also will be interesting to see if the state programs spur growth in 401(k) plan offerings, especially given that SECURE 2.0 provisions will make it easier for small businesses to offer retirement plans,” Doonan said. “Overall, actions at the federal level coupled with the state-facilitated retirement programs are steps in the right direction toward solving the alarming retirement savings shortfall facing most working Americans.”
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