New evidence on the efficacy of state-based retirement programs: The case of OregonSaves

John Chalmers, Olivia Mitchell, Jonathan Reuter and Mingli Zhong

Journal of Public Economics, 2025, vol. 246, issue C

Abstract: Seventeen US states have mandated employers to facilitate auto-enrollment retirement saving for workers lacking access to employer-sponsored plans, and proposed federal legislation seeks to extend these plans to the national level. This paper examines the experience with OregonSaves, the country’s longest-running plan, documenting that the program did prompt some participant savings. Median account balances were about $600 by mid-2023, but opt-out rates were above 50%, especially for the low-paid. Repeated exposure to the plan slightly reduced opt-outs, though withdrawals remained common. While modest savings accrued for many, it remains unclear whether these accounts will grow large enough to significantly increase retirement consumption.

Keywords: Retirement saving; Automatic enrollment; Low-wage worker; Job turnover; Opt out (search for similar items in EconPapers)
JEL-codes: D14 H7 J26 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:246:y:2025:i:c:s0047272725000775

DOI: 10.1016/j.jpubeco.2025.105379

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