At a Glance | November 21, 2019 Two Possible Approaches to Reducing the U.S. Retirement Deficit: National OregonSaves, Nationwide Adoption of 401(k) Safe Harbor Plan M A K ING PROJEC TIONS Aggregate U.S. Retirement Savings Deficit For Households Ages 35–64 OregonSaves and other defined contribution plans $3.83 Trillion Projected U.S. Retirement Deficit provide a valuable experiment EBRI Retirement Security Projection Model® Projected Aggregate Retirement Deficit of approaches that can Baseline Retirement Savings Shortfalls potentially reduce the nation’s projected retirement deficit. $3.37 Trillion OregonSaves Implemented in All States We asked: ‘What if 25 percent opt-out initially, auto-escalation up to 12% Reduction / –$456 Million OregonSaves were a national 10 percent, opt-out on escalation, and reduction program?’ and ‘What would from initial 5 percent from survey data. the impact be if all employers not currently offering a defined $3.18 Trillion Nationwide Adoption of 401(k) Safe Harbor Plan 17% Reduction / –$645 Million benefit or defined contribution All employers not currently offering a plan adopt a plan adopted a 401(k) safe 401(k) safe harbor plan with matching contributions. harbor plan?’ REDUC TIONS BY AGE COHOR T Projected Reduction in Average Retirement Deficit Nationwide By Age A nationwide OregonSaves plan would provide reductions OregonSaves in All States Nationwide 401(k) Safe Harbor in retirement deficits for all participants, most significantly Age for the youngest age cohort. 35–39 40–44 45–49 50–54 55–59 60–64 Cohort 401(k) safe harbor plans would reduce retirement deficits 3% for each cohort even further. 5% 6% 9% 9% 13% 14% 16% 16% 21% 25% 25% SOURCE: Jack VanDerhei, “What if OregonSaves Went National: A Look at the Impact on Retirement Income Adequacy,” EBRI Issue Brief, no. 494 (Employee Benefit Research Institute, October 31, 2019). © 2019 EBRI This report is copyrighted by the Employee Benefit Research Institute (EBRI). You may copy, print, or download this report solely for personal and noncommercial use, provided that all hard copies retain any and all copyright and other applicable notices contained therein, and you may cite or quote small portions of the report provided that you do so verbatim and with proper citation. Any use beyond the scope of the foregoing requires EBRI’s prior express permission. For permissions, please contact EBRI at permissions@ebri.org.