9 ways California’s new retirement plan changes the retirement savings landscape

Angela Antonelli
9 ways California’s new retirement plan changes the retirement savings landscape

On July 1, private sector employers in California gained access to an innovative new program that enables them to facilitate retirement savings for their employees. In a state where half of all private sector workers do not have a retirement savings account or participate in a pension, CalSavers stands to make a significant difference in the lives of everyday workers. Workers are automatically enrolled in individual retirement accounts (IRAs) with a default savings rate of 5% of their paychecks.