An auto-IRA may be just what your retirement portfolio needs if you qualify. With the decline of defined benefit pension plans in recent decades, retirement savers must take an active role to ensure their financial security later in life, likely with Individual Retirement Accounts (IRAs). Social Security alone is unlikely to fill that need with an average benefit of just over $1,900 per month, so workers need to save throughout their careers.
Workplace retirement savings programs like 401(k)s and 403(b)s provide an excellent way to set aside money for retirement, offering tax benefits and, in many cases, matching employer contributions. Americans are roughly 15 times more likely to save for retirement when their workplace offers a plan and 20 times more likely to save if contributions are automatic, according to an AARP study.
