The Economic Perspective: “Automated Retirement Plans”

Mary:  I’m Mary Walden, with economist MW, welcoming you to the economic perspective.   Today’s program looks at automated retirement plans.  Mike, saving for retirement is an important part of anyone’s financial plan.  Yes, people will receive Social Security, but it was never meant to be someone’s only source of retirement income.  Plus, many companies have ended their guaranteed plans.  So, most of us have to do part of our retirement saving on our own.  I understand some states are trying to help.  How?

 

Mike:  Summary Answer

  • Most people have access to IRA and 401 K plans
  • Both use tax benefits to help a person save for retirement
  • What some states are doing, is to have a person automatically enrolled in those plans
  • Unlike where person needs to choose to enroll
  • So have to take steps to opt out
  • Using psychology to help people to what, perhaps, they need to do
  • I’m MW

 

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics