Guest Editorial: Automatic IRAs in the Workplace Should be Implemented

The American Association of Retired Persons (AARP) came out with a survey earlier this year revealing about one-quarter of U.S. adults over age 50 who are not yet retired say they never expect to retire. The results of the survey run counter to the American Dream of retiring after decades in the workforce. Millions of Americans count on monthly Social Security payments, a pension or a 401(k) plan and personal savings and assets to carry them through their retirement years. However, as prices and the cost of living continue to rise, a concern has emerged among many Americans that they have not saved enough for retirement and will have to work into their golden years to survive. In addition, pensions are no longer a dominant instrument for retirement. In 1975, there were 27.2 million active participants in private sector pension plans but by 2020, that number had dropped to 12 million, according to the Congressional Research Service based on data obtained by the U.S. Department of Labor’s Bureau of Labor Statistics. Meanwhile, the number of participants in plans such as 401(k)s or profit-sharing soared from 11.2 million in 1975 to 85.3 million in 2020. In other words, people are now...