Plan to expand government-matched retirement contributions popular – survey

More than 6 in 10 (63%) Americans would support a program offering government-matched retirement contributions to lower-income working Americans, according to a survey released Tuesday by the Economic Innovation Group, a bipartisan public policy organization.

The EIG unveiled a plan in March co-authored by Kevin Hassett, vice president and managing director of The Lindsey Group and former chairman of the White House Council of Economic Advisers during the Trump administration; and Teresa Ghilarducci, director of the Schwartz Center for Economic Policy Analysis at The New School, that would expand access to retirement savings through a program for lower-income working Americans modeled after the Thrift Savings Plan, including government-matched retirement contributions.

The $757.8 billion Thrift Savings Plan is the retirement system for 6.3 million federal employees and members of the uniformed services.

Much like the TSP, the EIG proposal features automatic enrollment for eligible workers, low fees, simple plan options, and federal matching contributions to reward and encourage savings. Under the EIG plan, the federal government would match contributions only for workers who make below a median income line and whose employers do not currently offer a retirement matching program, up to a limit of 5% of a person's annual earnings.

"As the country rebuilds, we need new ideas to build wealth and financial security for American working families," Ms. Ghilarducci said in a news release. "Our bold design for expanding retirement plans is one key step. Low- and moderate-income workers should have access to the same type of proven, expertly designed savings plan available to every member of Congress and the broader federal workforce."

The survey, which was conducted in March by polling firm Echelon Insights and includes responses from 1,000 registered voters, found that 55% of respondents were supportive of a program offering government-matched retirement contributions to lower-income workers, but support grew to 63% after learning about the proposal's features. Nearly a quarter (23%) were opposed to the proposal all together and 14% were unsure, the survey found.

More broadly, 91% of voters agreed that all working Americans should have the ability to participate in a retirement savings plan.

Separately, 76% of respondents said they're somewhat or very confident they will be able to improve their financial standing over their lifetime, but only 50% said the next generation will be financially better off than their generation, according to the survey.