Do State-Sponsored Retirement Plans Boost Retirement Saving?
AbstractOregon recently launched an automatic-enrollment retirement savings program for private sector workers lacking access to other workplace retirement plans. We analyze participation choices, account balances, and inflow/outflow data using administrative records between August 2018 and April 2020. Within the small to mid-sized firms served by OregonSaves, estimated average after-tax earnings are low ($2,365 per month) and turnover rates are high (38.2 percent per year). Younger employees and employees in larger firms are less likely to opt out, but participation rates fall over time. Overall, we conclude that OregonSaves has meaningfully increased employee savings by reducing search costs.
CitationChalmers, John, Olivia S. Mitchell, Jonathan Reuter, and Mingli Zhong. 2022. "Do State-Sponsored Retirement Plans Boost Retirement Saving?" AEA Papers and Proceedings, 112: 142-46. DOI: 10.1257/pandp.20221021
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth
- J26 Retirement; Retirement Policies
- J32 Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
- L25 Firm Performance: Size, Diversification, and Scope