State-run IRAs own $500 million for private sector Workers.
By The Exchange Team
Another state aims to raise retirement contributions among workers at companies without 401(k) plan.
Delaware Gov. John Carney signed a bill Thursday to automatically enrol private sector workers in Roth IRAs.
The state will join almost a dozen others that have adopted or are considering similar programmes.
According to Georgetown University's Center for Retirement Initiatives, workers have saved more than $500 million in state-administered plans.
Angela Antonelli, executive director of the centre, claimed that the initiatives are meeting a long-unmet need.
"Workers wish [to save] and will save when it is made simple for them and provided by their companies," Antonelli said.
As per center's study, an estimated 57 million workers do not have access to a retirement plan through their employer.