California Shows How to Fill the Retirement Security Void

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Media Outlet: The Hill

Reid Cramer wrote for the Hill about California's new state-run retirement plan:

California Gov. Jerry Brown (D) just signed a bill that will provide a major assist to workers who need help saving for their future. By creating the California Secure Choice Retirement Savings Program, the state is creating its own 401(k)-type plan and almost everyone in the workforce who doesn't have his or her own plan already will be automatically enrolled. In California, that's almost 7 million workers, many of whom aren't setting aside any money to augment their Social Security benefits.
With Secure Choice, these workers will have up to 5 percent of their income deducted from their paycheck and deposited into a personal account. They can opt out if they choose. If they stay in, they can benefit by participating in a pooled fund with low fees, economies of scale and a mandate for strong consumer protections that is designed to maximize retirement security.


Reid Cramer is director of the Millennials Initiative at New America. Previously, he served as the Asset Building program's research director and as a co-director of New America's Next Social Contract Initiative.