While many of us have spent time discussing state-run IRAs and how they impact the retirement industry, the real focus should be on the employers in those states
The closer these state plans get to implementation, the more we learn about how they will impact the businesses they are meant to assist. As mentioned previously, these state plans are geared mainly toward employers with 100 or fewer employees. According to the U.S. Small Business Administration Small Business Profile, this demographic consists of:
- 28.8 million businesses in the United States
- Employs 56.8 million workers
- Represents 99.7% of all employers
- Employ 48-percent of private sector workers
The underlying intentions of each of these bills or resolutions should be commended as there are tens of millions of employees in the United States who do not have access to a workplace retirement savings vehicle.
However, based on the history of government dabbling in private sector affairs, these efforts will leave quite a bit to be desired.