April 23, 2025 - WASHINGTON—More than one million private sector workers nationwide have enrolled in state retirement savings programs, a major milestone in the effort to address the nation’s retirement savings challenges. These programs allow employees whose workplaces do not offer retirement plans to automatically contribute a portion of their paycheck to a retirement savings account.  

 Auto-IRA programs and other state retirement program options are now enacted in 20 states and are providing more Americans a pathway to financial security in retirement. Eleven of these states — California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, New Jersey, Oregon, Vermont, and Virginia — have fully operational auto-IRA programs, with additional states at various stages of implementation. Many of the participating workers are saving for retirement for the first time.  

“These programs show that when saving for retirement is easy and automatic, people do it,” said Nancy LeaMond, AARP Executive Vice President and Chief Advocacy & Engagement Officer. “Thanks to state action, over a million Americans who were previously unable to save for retirement through their job are now doing that, though too many hardworking people are still left behind. Now, state leaders and Congress must work to ensure every American worker has access to a retirement savings plan at work where they can easily save for their future.” 

According to AARP research, nearly half of American workers in the private sector ─ 56 million people ─ still lack access to a retirement plan through their employer. Small businesses are especially likely to not have an employer-based retirement plan in place. Auto-IRA programs can help close this retirement savings gap; they don’t charge fees to employers and are designed to be simple for both employers and employees to use.

AARP has been a leading advocate for these programs, working at both the state and federal levels to expand access to retirement savings. AARP has endorsed proposed federal legislation, including the bipartisan Retirement Savings for Americans Act and the Automatic IRA Act, both of which would help improve retirement security for American workers.

For more on AARP’s advocacy on retirement security and broader efforts to strengthen financial security, view AARP’s Financial Security Fact Sheet. 

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About AARP  
AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the more than 100 million Americans 50-plus and their families: health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation's largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org/about-aarp/, www.aarp.org/español or follow @AARP, @AARPenEspañol and @AARPadvocates on social media. 
Source: AARP