More Than 1 Million Americans Now Enrolled in Auto-IRA Programs

HARRISBURG, PA — More than one million private sector workers nationwide are now saving for retirement through state-facilitated Auto-IRA programs — a major milestone in the effort to address the nation’s retirement savings challenges. These plans help workers whose workplaces do not offer a retirement plan to automatically contribute a portion of their paycheck into a secure retirement savings account. 

Despite growing momentum across the country, Pennsylvania does not yet offer such a program.

“Far too many Pennsylvanians are working hard every day but have no way to save for retirement through their job,” said Bill Johnston-Walsh, AARP State Director. “It’s time for the Commonwealth to take action. A state-facilitated savings option would offer a simple, no-cost way for small businesses to help employees take charge of their future.”

Auto-IRAs and other state retirement options are already operating in 20 states. These efforts are especially important for small business employees, who are much less likely to have access to an employer-sponsored plan.

AARP Pennsylvania has an ally in State Treasurer Stacy Garrity. She and her team have worked alongside AARP since being sworn into office in 2021 to promote Keystone Saves, which would create a work-and-save program in the Commonwealth. Garrity notes that Pennsylvania needs to combat the retirement security crisis that is on the horizon by implementing a solution that would make it better for employees, better for businesses, and better for taxpayers.

“These are people we all depend on every day, like the mechanic who keeps our car running and the waitress that tops off our coffee,” said Pennsylvania Treasurer Stacy Garrity. “Two million hardworking Pennsylvanians without access to workplace retirement plans deserve to have the same opportunity to save.”

According to AARP research, nearly half of American workers in the private sector ─ 56 million people ─ still lack access to a retirement plan through their employer. Small businesses are especially likely to not have an employer-based retirement plan in place. Auto-IRA programs can help close this retirement savings gap; they don’t charge fees to employers and are designed to be simple for both employers and employees to use.

“These programs show that when saving for retirement is easy and automatic, people do it,” said Nancy LeaMond, AARP Executive Vice President and Chief Advocacy & Engagement Officer. “Thanks to state action, over a million Americans who were previously unable to save for retirement through their job are now doing that, though too many hardworking people are still left behind. Now state leaders and Congress must work to ensure every American worker has access to a retirement savings plan at work where they can easily save for their future.”

AARP has been a leading advocate for these options, working at both the state and federal levels to expand access to retirement savings. AARP has endorsed proposed federal legislation, including the bipartisan Retirement Savings for Americans Act and the Automatic IRA Act, both of which would help improve retirement security for American workers.

For more on AARP’s advocacy on retirement security and broader efforts to strengthen financial security, view AARP’s Financial Security Fact Sheet.

About AARP

AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families: health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation's largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org/about-aarp/, www.aarp.org/español or follow @AARP, @AARPenEspañol and @AARPadvocates on social media.