Retirement Security Matters: May 7, 2020
Greetings! Welcome! to Retirement Security Matters
a forum for retirement readiness innovation by states, supporters, and servicers
This week you won’t want to miss
States updates – including fresh info from Oregon
Lew Minsky of DCIIA and new research on retirement design
Including automatic features and how they’re evolving
And, a refreshing photo break and some resources! The scroll is worth it
STATES IN ACTION
Oregon (workforce 1.9 million) – OregonSaves met for its regularly scheduled Board meeting on May 5. Of note: 1) the Board approved a program administration services fee agreement amendment calling for new breakpoints as assets grow; 2) the current rulemaking comment period closed April 21 and January 2021 deadlines are now in effect for Employers with fewer than 5, and Client Employers (of PEOs, generally). The program also shared refreshed statistics, some of which are very interesting. As of March 31, 2020:
- the average account balance is $700; average monthly contributions are $120
- about 5% of savers have balances in excess of $2,500
- about 1% have balances in excess of $10,000
- about 4% of workers have taken withdrawals from their accounts, but retain balances. Another 5.5% have drawn their balances down to zero. Some of this may be pandemic related; some if it is normal activity as workers try the program for the first time.
- average balances are lower for the youngest workers, rising with age – presumably a reflection of workers at later stages earning higher incomes. In some cases workers closer to retirement are also saving at higher levels:
