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New evidence on the efficacy of state-based retirement programs: The case of OregonSaves

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  • Chalmers, John
  • Mitchell, Olivia S.
  • Reuter, Jonathan
  • Zhong, Mingli

Abstract

Seventeen US states have mandated employers to facilitate auto-enrollment retirement saving for workers lacking access to employer-sponsored plans, and proposed federal legislation seeks to extend these plans to the national level. This paper examines the experience with OregonSaves, the country’s longest-running plan, documenting that the program did prompt some participant savings. Median account balances were about $600 by mid-2023, but opt-out rates were above 50%, especially for the low-paid. Repeated exposure to the plan slightly reduced opt-outs, though withdrawals remained common. While modest savings accrued for many, it remains unclear whether these accounts will grow large enough to significantly increase retirement consumption.

Suggested Citation

  • Chalmers, John & Mitchell, Olivia S. & Reuter, Jonathan & Zhong, Mingli, 2025. "New evidence on the efficacy of state-based retirement programs: The case of OregonSaves," Journal of Public Economics, Elsevier, vol. 246(C).
    • Handle: RePEc:eee:pubeco:v:246:y:2025:i:c:s0047272725000775
    DOI: 10.1016/j.jpubeco.2025.105379
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    References listed on IDEAS

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    1. Gabriel D. Carroll & James J. Choi & David Laibson & Brigitte C. Madrian & Andrew Metrick, 2009. "Optimal Defaults and Active Decisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1639-1674.
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    4. John Beshears & Ruofei Guo & David Laibson & Brigitte C. Madrian & James J. Choi, 2023. "Automatic Enrollment with a 12% Default Contribution Rate," NBER Working Papers 31601, National Bureau of Economic Research, Inc.
    5. John Chalmers & Olivia S. Mitchell & Jonathan Reuter & Mingli Zhong, 2022. "Do State-Sponsored Retirement Plans Boost Retirement Saving?," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 142-146, May.
    6. Anek Belbase & Geoffrey T. Sanzenbacher, 2018. "How Have Workers Responded to Oregon’s Auto-IRA?," Issues in Brief ib2018-22, Center for Retirement Research.
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    Keywords

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    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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