Bill aims to boost access to work retirement plans for millions of Americans

On Dec. 15, Rep. Richard Neal, D-Mass., ranking member of the House Ways and Means Committee, introduced the Automatic IRA Act of 2025 to address concerns that many working people lack access to an employer-provided retirement plan.

Under the proposal, employers with at least 10 employees would be required to provide or arrange for access to an automatic retirement contribution plan for all full-time and long-term part-time employees. Workers would be automatically enrolled with the flexibility to opt out at any time.

Additionally, the bill includes provisions to help workers convert their savings into guaranteed income. Employers would be required to offer employees with at least $200,000 in vested savings the option to convert up to half their balance into a protected lifetime income solution, such as an annuity.

The legislation also recognizes the growing role of non-traditional, or “gig” work. It directs the Treasury secretary to, by regulation or other guidance, provide for making available automatic IRAs to individuals who provide services to the employer that do not constitute employment.

Many Americans today are lacking in both access to retirement savings and the amount saved for their retirement. According to LIMRA data, about half of American workers participate in a retirement plan. Additional research, however, shows the average of household savings in defined contribution plans/IRAs is $334,000, yet the median retirement savings was $87,000 among those with any savings.

Support for the Automatic IRA Act

Both the Insured Retirement Institute and the American Council of Life Insurers issued statements in support of the act.

“Far too many workers are left without the ability to save through their job, and this bill offers a smart, practical solution to close that gap,” said Wayne Chopus, president and CEO of the IRI. “By expanding access and strengthening savings tools, Congressman Neal’s legislation will help workers and retirees achieve a secure and dignified retirement.”

In a statement, the ACLI said, “the bill would dramatically increase enrollment in employer-sponsored retirement plans, expand access to lifetime income options through annuities, and improve retirement security for millions of Americans.”

If enacted, the ACLI estimates:

• 34.6 million workers would gain access to employer-based retirement plans.
• Up to 24.6 million workers would participate in these plans.
• Combined employer and employee contributions could total nearly $160 billion in additional defined contribution plan savings, based on current salary and contribution assumptions.

“Retirement security is foundational to economic dignity,” Chopus said. “Congress has the opportunity to give tens of millions of workers a chance to save and retire with confidence. We look forward to working with Congressman Neal and other congressional leaders to advance retirement security for more workers and retirees.”

“Through annuities — the only true lifetime income product in the marketplace — retirees can be assured they won’t outlive their savings. Representative Neal’s legislation offers practical, forward-looking solutions that will empower millions of workers to prepare for a long retirement,” said David Chavern, ACLI president and CEO.

For more information about the Automatic IRA Act, see this press release issued by Rep. Neal or this summary of the legislation.