State-mandated retirement savings programs have continued to gain momentum and bridge the gap for many small businesses struggling to afford administrative costs. Since 2012, every state except Alabama has either enacted or introduced legislation that would establish state-facilitated retirement savings programs.

However, new research from Georgetown University's Center for Retirement Initiatives has found that auto-IRA mandates at the state level dramatically increase the uptake of employer-sponsored retirement plans, even though employers in those states can elect to enroll in the auto-IRA program instead.

These new state auto-IRA laws are attempting to solve a problem: Few private sector workers in the U.S. save for retirement without an employer-sponsored retirement plan (ESRP), but only about half have access to one. As of June 30, 2024, there are 20 states that have set up new programs for private sector workers, and 17 of these states are auto-IRA program states.