New Jersey Auto-IRA Program Reaches $1M in Retirement Savings

New Jersey’s state-administered retirement savings program for private sector employers, RetireReady NJ, has collected $1 million in retirement savings since its launch five months ago, according to an announcement from State Treasurer Elizabeth Maher Muoio.

RetireReady NJ launched a pilot program earlier in the year with four participating employers, with the full program starting in July. RetireReady NJ now supports thousands of New Jersey employees in saving for retirement.

Businesses with at least 25 employees that have been in business for at least two years and do not currently offer employees a qualified retirement plan are required to register for the RetireReady NJ program. Employees are automatically enrolled into the program and have the opportunity to save for retirement through payroll deductions into a Roth or traditional individual retirement account.

The RetireReady NJ program was created by the New Jersey Secure Choice Savings Program Act, which Governor Phil Murphy signed in 2019. Murphy’s administration had estimated that Secure Choice could benefit nearly 2 million New Jersey residents and manage up to $10 billion in investments.

Murphy was re-elected in 2021, enabling him to stay in office to see the program debut this year, and Muoio praised the efforts of those who helped it launch.

“This milestone represents a crucial step forward toward financial security in retirement for many New Jerseyans,” Muoio said in a statement. “I’d like to thank the staff of RetireReady NJ for their diligent efforts to ensure saving for retirement is convenient and accessible for private sector employees across the Garden State, along with the many public and private sector partners who have helped spread the word about this new and important program.”

Vestwell, a third-party administrator, runs the program in coordination with the state’s treasury.

According to Georgetown University’s Center for Retirement Initiatives, state auto-IRA programs have accumulated $1.742 billion in assets since they were first established in 2017.

Rhode Island recently became the 20th state to launch an auto-IRA program: RISavers is partnering with a similar program in Connecticut to offer Rhode Islanders in the private sector access to retirement savings.