In “When it Comes to Retirement Savings Most Workers Are on Their Own” I discuss the limited availability of employer-sponsored retirement plans, and workers’ bias toward sticking with their employer’s default contribution rate.

Retirement plans’ default contribution rates have a large impact on workers’ retirement savings because workers tend to stick with what they’re offered. The most common default rate is 3%, but more and more employers are going above and beyond. The Wall Street Journal reported that 39% of employers offer a default rate of 4%, up from 27% ten years ago.

This trend is welcome. However, positive developments in employer-sponsored retirement accounts are only available to the 41% of American workers who have access to them. People without access to retirement savings accounts at work are unlikely to save for retirement on their own. Thus a large number of American workers have no retirement savings whatsoever. Even workers on the verge of retirement have, on average, nowhere near enough savings to retire.

America’s retirement system and access to quality retirement savings vehicles are not robust. We should enact Guaranteed Retirement Accounts to ensure all Americans can enjoy a comfortable and dignified retirement.