A retirement savings revolution is quietly unfolding across America, state by state. This month, Minnesota and Hawaii became the 17th and 18th states to launch automatic retirement savings programs for private-sector workers—a movement that has already helped one million workers accumulate $2.75 billion in savings since 2017.

The programs are designed to address one of the most stubborn problems in American personal finance: 53.7 million full-time and part-time workers between ages 18 and 65 have no access to any employer-based retirement plan, according to 2025 research from the Economic Innovation Group.

How State Auto-IRA Programs Work

The concept is deceptively simple. Employers without retirement plans are required to automatically enroll workers in state-facilitated Roth IRA accounts. Contributions are deducted directly from paychecks—typically starting at 3% to 5% of wages—and workers can opt out at any time.

"The genius of these programs is that they use inertia to help people save," explains a retirement policy analyst. "Most workers who are automatically enrolled stay enrolled, even though they could leave with a few clicks."

Minnesota's program opened January 1 and will begin enrolling workers on January 19. Hawaii plans to launch its version later this year with a mandatory default contribution rate of 5%.

The Stark Reality of America's Retirement Gap

The numbers reveal a retirement system with deep inequalities. Among full-time workers:

  • 78.7% of the lowest-earning workers (under $27,400 annually) lack access to any retirement plan
  • 18.2% of the highest-earning workers (over $180,600 annually) lack access
  • 41.4% of all full-time working Americans have no access to employer retirement plans
  • 43.5% do not participate in available plans
  • 49.9% do not receive an employer match

The gap between high and low earners is particularly stark. Workers without retirement access tend to be younger, work in smaller businesses, and are disproportionately employed in industries like retail, hospitality, and construction.

2026: A Watershed Year for State Programs

Several states face key implementation deadlines this year:

New York

New York is rolling out its program in three waves:

  • Wave 1 (employers with 30+ employees): Register by March 18, 2026
  • Wave 2 (employers with 15-29 employees): Register by May 15, 2026
  • Wave 3 (employers with 10-14 employees): Register by July 15, 2026

Virginia

Virginia's full program launches April 1, 2026:

  • Wave 1 (100+ employees): Register by June 30, 2026
  • Wave 2 (50-99 employees): Register by December 1, 2026

Rhode Island

Wave 1 (100+ employees): Register by October 21, 2026

Florida Could Be Next

The retirement savings movement may soon expand to the nation's third-largest state. Florida Senator Jonathan Martin has introduced SB 930, which would establish a task force to lay groundwork for a potential auto-IRA program. The task force would submit an interim report by December 1, 2026.

If Florida moves forward, it would become the 19th state to join the movement—and the first major Southern state to do so.

Results So Far: $2.75 Billion and Counting

Collectively, workers have saved $2.75 billion through state-run retirement programs as of the end of 2025. The bulk of that—around $2.69 billion—is held in auto-IRA accounts.

California's CalSavers, the largest state program, has been particularly successful, enrolling hundreds of thousands of workers since launching in 2019. Illinois, Oregon, and Colorado have also seen strong participation rates.

Interestingly, research shows state auto-IRA programs actually encourage some employers to establish their own plans rather than use the state program—a positive spillover effect that expands retirement coverage beyond the programs' direct reach.

Federal Action Remains Elusive

While states forge ahead, federal legislation to close the retirement coverage gap has stalled. The Retirement Savings for Americans Act, modeled after the Thrift Savings Plan for federal employees, would automatically enroll private workers lacking workplace retirement access and provide matching contributions through refundable tax credits.

The bill would make full- and part-time workers immediately eligible, with automatic enrollment at 3% of income. Independent and gig workers would also qualify. Low- and moderate-income workers would receive up to a 5% matching contribution.

Until Congress acts, the state-by-state approach continues to expand coverage incrementally—one automatic enrollment at a time.

What Workers Should Know

If you work in one of the 18 states with an active or upcoming auto-IRA program:

  • Check your enrollment status: You may already be enrolled or will be soon
  • Review the default contribution rate: Typically 3-5%, which you can adjust
  • Understand it's a Roth IRA: Contributions are after-tax, but qualified withdrawals in retirement are tax-free
  • You can opt out: While automatic enrollment leverages inertia to help you save, participation is voluntary
  • Watch for employer communication: Your employer should notify you about the program

For the 54 million American workers who have been left behind by the traditional employer-sponsored retirement system, state auto-IRA programs represent a lifeline—not a perfect solution, but a meaningful step toward financial security in retirement.