While most people agree that they need to “do more” for retirement, inertia and lack of guidance hold many back from actually “doing more.” Oregon and other states have set up statewide IRA investment accounts that, once rolled out, would be available for any working employee in the state to use if their company doesn’t offer a 401(k) plan on its own. Even more valuably, these programs are “opt-out” so that if employees do nothing, they are automatically saving for the future, though the program is optional for those who would rather not.
The “opt-out” nature gives people a nudge to make a decision about retirement, without forcing them to do anything they don’t like. A small basket of investment options built around low-cost index funds would be fairly affordable to design and manage, and is arguably the best way to prepare for retirement. While employer-organized programs (with a matching contribution) would be superior, a statewide starter account would allow people who work part-time or in small businesses, or who move jobs frequently, to start saving early and allow compound interest to work for them. Utah should consider such an initiative.
Landon Troester, Murray