As state-facilitated retirement savings programs are poised to mark $2 billion in assets and 1 million funded saver accounts, new Georgetown University Center for Retirement Initiatives analysis shows how state-facilitated programs and the private sector are beginning to move the needle on coverage though critical gaps remain.
Media Contact:
Jon Kuhl
Executive Director of Communications
Georgetown University, McCourt School of Public Policy
jonathan.kuhl@georgetown.edu
202-695-5306
WASHINGTON, D.C., March 13, 2025 — A new study reveals significant gaps in retirement plan access while demonstrating how state-facilitated retirement savings programs and policies are effectively expanding coverage for millions of Americans.
The Georgetown University Center for Retirement Initiatives (CRI), in conjunction with Econsult Solutions Inc. (ESI) and with partial grant support from the American Retirement Association (ARA), released new research today about employee access to retirement savings options in the workplace.
The national analysis, along with state-specific profiles, provides critical insights into challenges for retirement savings access and potential solutions for policymakers, employers, and industry stakeholders.
“This research clearly demonstrates both the urgent need to expand retirement savings access and the effectiveness of state-facilitated programs to address this challenge,” said Angela Antonelli, Executive Director of the CRI. “State programs are poised to mark their latest milestones in the next few weeks — $2 billion in assets and 1 million funded saver accounts — and are beginning to move the needle to expand access for the first time in decades.”
“This research confirms what we’ve long advocated for at the American Retirement Association: that expanding access to workplace retirement plans is critical for America’s financial future,” said Will Hansen, Chief Government Affairs Officer at the ARA. “The success of state-facilitated programs, alongside the landmark SECURE 2.0 Act provisions, demonstrates the power of public-private partnerships in closing the retirement coverage gap, but more work needs to be done. We’re encouraged by this momentum and remain committed to supporting innovative solutions that strengthen retirement readiness nationwide.”
Key National Findings
The new research has found that:
– 47% of U.S. private sector full-time and part-time workers over the age of 18 (59 million workers) lack access to employer-sponsored retirement savings plans.
– An additional 23.4 million gig economy workers also lack access to workplace retirement options.
– Small businesses with fewer than 50 employees are particularly affected, with 63% of their employees lacking access.
– The senior population is projected to grow by 34% between 2020 and 2040, from 55.8 million to 74.9 million, and currently, 23% of elderly households in the U.S. rely on Social Security for at least 90% of their income.
The Benefit of State Programs
State-facilitated retirement savings programs have been adopted in 20 states and have the potential to offer coverage to an estimated 20.6 million workers who currently lack access in those states.
“State-facilitated retirement programs are a commonsense solution to helping working Americans achieve a dignified and sustainable retirement,” said Colorado Treasurer Dave Young, who chairs the Georgetown CRI State Advisory Council. “In just over two years of operation, the Colorado SecureSavings Program boasts more than 72,000 individual contributors who have saved $100 million and counting. We are thrilled to be part of a national movement that is raising the standard of living for Americans beyond their working years.”
The Georgetown CRI research provides detailed analyses for all 50 states and the District of Columbia, highlighting both states with existing retirement savings programs and many others, like Georgia, Mississippi, and Florida, that could benefit significantly from implementing such initiatives.
Florida Example
– Florida has the highest percentage of private sector workers — 59% (4.97 million employees) — who lack access to employer-sponsored retirement plans.
– An additional 2.33 million gig workers in Florida also lack access to workplace retirement options.
– Small businesses in Florida face an even greater challenge, with 73% of their employees lacking access.
– The Florida senior population is projected to grow by 48% between 2020 and 2040, from 4.6 million to 6.8 million, and currently, 26% of elderly households in Florida rely on Social Security for at least 90% of their income.
Contributing Directly and Indirectly to Expanded Access
State-facilitated retirement savings programs contribute not only directly to expanding access, but also indirectly as new businesses adopt new retirement plans in response to state policy.
The Georgetown CRI analyzed the effects of three state programs — CalSavers, Illinois Secure Choice, and OregonSaves — on expanding access to retirement savings for workers in each of their states. The analysis shows the combined effect of direct program participation and induced new private retirement plan formation, notably:
- Of the estimated 995,000 workers in Oregon who have access to retirement savings, OregonSaves has provided the opportunity to save for more than 234,000 of these workers and an additional 36,000 have been covered through new private retirement plan formation.
- Of the estimated 2,817,000 workers who have access to retirement savings in Illinois, Illinois Secure Choice has already provided an opportunity to save for more than 265,000 of these workers and an additional 96,000 workers have been covered through new private retirement plan formation.
- Of the estimated 7,368,000 workers who have access to retirement savings in California, CalSavers has provided an opportunity to save for more than 913,000 of these workers and an additional 629,000 of them have been covered through new private retirement plan formation.
“Our Early Adopter analysis for CalSavers, Illinois Secure Choice, and OregonSaves shows how both state programs and the private sector collectively are making important progress in covering more workers,” said Antonelli. “This progress will only continue as these programs and more than a dozen other programs are fully implemented and mature, with a growing number of employers using a state program or choosing to adopt new retirement plans of their own.”
“We are pleased that the policy underlying Illinois Secure Choice and the program itself are expanding access to retirement savings to help more workers prepare for a retirement with dignity,” said Illinois Treasurer Michael Frerichs. “Our nation’s retirement savings gap means there is more work to do. We hope that Illinois Secure Choice can serve as inspiration for other states looking to work on the issue.”
Why Retirement Savings Matter
The CRI’s research emphasizes that expanding retirement savings access and boosting private retirement savings are crucial to supporting a better quality of life for seniors, generating greater economic activity through household spending, and constraining the growth of government support program costs in the future.
The new federal Saver’s Match, also highlighted in the research, could provide additional support for eligible low- and moderate-income workers, including those saving through state-facilitated programs. The CRI’s analysis shows that a worker lacking access to retirement savings through an employer-sponsored plan could significantly benefit from an Auto-IRA program combined with the Saver’s Match: A typical 25-year-old server could accumulate $265,300 by age 65, generating approximately $16,800 in annual retirement income to supplement Social Security benefits, which today average $23,150 per year.
The complete research findings, including the national analysis, state-specific profiles, and program performance data are available at cri.georgetown.edu.
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The Georgetown University Center for Retirement Initiatives
The Georgetown University Center for Retirement Initiatives (CRI) is a research center focused on retirement security and policy solutions that expand retirement plan coverage, increase retirement savings, and improve long-term retirement income security.
Econsult Solutions Inc.
Econsult Solutions Inc. (ESI) is an economic consulting firm that provides businesses and public policymakers with economic consulting services in urban economics, real estate economics, transportation, public infrastructure, economic development, and public policy.
The American Retirement Association
The American Retirement Association (ARA) represents every type of pension professional, from business owners, actuaries, consultants, and administrators to insurance professionals, financial advisors, accountants, attorneys, and human resource managers, united by their belief in and commitment to the private pension system.