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We analyze a new policy that would create automated retirement savings accounts that would really impact about
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56 million low-income Americans by 2030. And the program is fully funded using existing tax expenditures that we
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have on retirement accounts that currently benefit higher income households. in particular, higher income
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households today get to deduct their contributions to 401k, 403b type plans on a traditional 401k basis or use a
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Roth deduction. And so what we're saying is let's use that same money but set up
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automated accounts for lowincome households. And so the revenue effects on the government is going to be the
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same. It's not going to be additional costs. a lower-income household starting
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at age 25 today will have about 200,000 of retirement savings by the time they're retired. What we know from a lot
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of research is that as you get rid of the tax adjustment for higher income households for 401k plans, it doesn't
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impact their retirement saving that much. But for low-income households, it would dramatically increase their
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retirement savings. What this will also mean is that they won't have to rely as
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much on the government for social security, Medicare or Medicaid. Also means something that's bequetable,
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something that we've heard a lot from low-income households, especially in the
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black and Hispanic community saying that we want to have assets that we can lead
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to our errors, lead to our kids, help with the down payment of a home, things like that.