A lot of employers offer 401k plans to their employees, but relying entirely on that plus Social Security benefits is proving to be harder for people.
Social Security recipients will see a 5.9% increase in their benefits next year, but it isn’t much considering the inflation Americans are facing.
There are other options for saving money ahead of retirement, including IRAs.
Some states are making it easier for their residents and creating automatic IRAs.
An IRA, or individual retirement account, is a savings account with tax breaks so people can invest in their retirement long term.
People with earned income may get an IRA through a bank, online brokerage, in-person broker, or investment company.
Right now California, Illinois, and Oregon offer automatic IRA accounts.
Connecticut, Maine, Maryland, New Jersey, New York and Virginia plan to start their own programs soon.
State ran IRA accounts automatically deduct 3-5% from your paycheck to place in an IRA through an investment company.
People may opt out.
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