A Big Step Toward Retirement Security: What the Automatic IRA Act Means for Millions of Workers

Retirement security is about more than saving money. It’s about peace of mind, dignity, and freedom to enjoy life after decades of work. The Automatic IRA Act proposed by Congressman Richie Neal (D-MA) would help millions more Americans gain access to retirement savings plan options, especially gig workers, independent contractors, and employees of small businesses.
What Is an IRA—and Why Does It Matter?
An Individual Retirement Account (IRA) is a type of savings account designed specifically for retirement. It allows people to set aside money, often with tax advantages, so it can grow over time. IRAs are especially important for workers who don’t have access to traditional employer-sponsored plans like 401(k)s.
The Automatic IRA Act would make it easier for workers to start saving by guaranteeing that workers at businesses with 10 or more employees have access to a retirement plan with automatic enrollment if they do not already. Workers can opt out, but the default would be to start saving, making it easier to build long-term financial security.
Who Benefits?
This proposal would significantly expand access to retirement savings:
- An estimated 34 million workers would gain access to workplace retirement plans (According to ACLI).
- This could boost the retirement savings of American workers by nearly $160 billion, including an estimated $64 billion in employer contributions.
That means more families planning for the future, more workers building wealth, and fewer people facing financial insecurity in retirement.
Why This Is a Game-Changer
The Auto IRA Act offers a model that would help close the retirement savings gap for gig workers, independent contractors, and employees.
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