EBRI Issue Brief

Impact of Five Legislative Proposals and Industry Innovations on Retirement Income Adequacy

Jan 20, 2022 12  pages


  • The combination of Automatic Contribution Plan/Arrangement (ACPA) provisions and an enhanced Saver’s Credit program are projected to have a material impact on reducing retirement deficits when analyzed for households simulated to have a retirement deficit.
    • For those currently ages 35–39, the reductions in retirement deficits vary from 17 to 26 percent, depending on race.
    • This combination has an even larger impact on households who are not simulated to have a retirement deficit.
  • The combination of ACPA provisions and an enhanced Saver’s Credit program have the greatest positive impact on the retirement savings shortfalls of families headed by White and Hispanic workers[i] ages 35–39. 
  • The retirement savings surpluses of families headed by Black workers these ages are most positively impacted by these same modifications.
  • The net outcomes from these modifications are most favorable to families headed by Black workers, followed by those headed by Hispanic workers.
  • The addition of employer matches on student loans to the ACPA and enhanced Saver’s Credit program has the greatest favorable impact on families headed by Black and White workers ages 35–39.
  • However, the use of a “skinny” 401(k) in ACPA most favorably impacts families headed by Hispanic and White workers this age.
  • The addition of auto portability significantly improves retirement savings shortfalls for all races studied, with families headed by workers falling in the “other” category impacted the least.
 The results are relatively robust to changes in assumptions for opt-out rates.

[i] Note: Not all families are headed by workers in this dataset.