Will auto-IRAs help households cope with emergency expenses?

Liu, Siyan, and Laura D. Quinby. “Will auto-IRAs help households cope with emergency expenses?”. Issue in Brief 24-21, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, October 2024. http://hdl.handle.net/2345/bc-ir:110151.
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Abstract

The brief's key findings are: (1) State auto-IRA programs help workers build retirement savings, though participants can withdraw their contributions without taxes or penalties. (2) But a new CRR survey of low- to moderate-income workers shows that only 10 percent would tap such an account for an emergency. (3) Most workers prefer to keep the savings intact for retirement and have misperceptions about taxes and penalties. (4) Whether the withdrawal process is described as "hard" or "easy" had little effect on withdrawals. (5) But the "easy access" framing did make workers more enthused about auto-IRAs, which could help participation.

Title
Will auto-IRAs help households cope with emergency expenses?
Author
Liu, Siyan
Quinby, Laura D.
Center
Center for Retirement Research
Genre
report
Date Issued
October 2024
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
24-21
Persistent Link
http://hdl.handle.net/2345/bc-ir:110151
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing Retirement

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