Priya PatelTLDR:
- Capitalize, a 401(k) technology firm, collaborated with the Center for Retirement Research and found that nearly 6 in 10 U.S. workers now have access to 401(k) plans.
- This increase in coverage is attributed to recent U.S. legislation, specifically the 2019 SECURE Act and the SECURE Act 2.0.
Article Summary: The article discusses the findings of the new 401(k) Statistics Tracker released by Capitalize, a 401(k) technology firm, in collaboration with the Center for Retirement Research at Boston College. The Tracker revealed that almost 60% of U.S. workers now have access to 401(k) plans, equivalent to 70 million employees. This increase in coverage, amounting to 6.4%, meant that an additional 4.3 million employees gained access to 401(k) accounts over the past year. The surge in coverage is attributed to recent U.S. legislation, specifically the 2019 SECURE Act and its 2022 successor, the SECURE Act 2.0, which introduced incentives and measures encouraging employers to broaden retirement plan offerings.
The CEO and Co-Founder of Capitalize, Gaurav Sharma, emphasized the firm’s mission to help people save for retirement. The collaboration with the Center for Retirement Research adds academic credibility to their research. Previous collaborative work between the two organizations, such as “The True Cost of Forgotten 401(k) Accounts,” has shed light on the significant amount of money in forgotten 401(k) accounts.
The article highlights the importance of aggregating and compiling cross-institutional data to analyze the defined contribution market as a whole, rather than relying on institution-specific research. By providing key statistics in one place, individuals can make informed decisions about their retirement savings. The partnership between Capitalize and the Center for Retirement Research aims to address issues in the retirement system and identify areas that can benefit from policymakers’ and the private sector’s focus.
