How can NH increase retirement savings?

According to a May 2016 report from the Government Accountability Office, only 40% of U.S. households have some savings in a private retirement account, such as a 401(k). 

In 2014 the National Institute on Retirement Security reported that the average amount in a retirement account in New Hampshire was $26,285, which fell below the national average of $30,345. 

If employees do not start contributing more to private retirement accounts, the state will face significant costs down the road to provide for the health and welfare of retirees.

Lawmakers in New Hampshire and across the nation have considered several ways to increase private retirement savings.

According to the Pew Charitable Trusts, seven states have state-sponsored retirement programs for private employees.  Some of these programs require employers to automatically deduct a certain percentage of an employee's paycheck and send the money to the state to put in an IRA. Employees can choose to opt out.

Supporters argue these programs will greatly increase retirement savings. Opponents argue that the programs create an undue burden on small businesses.

In 2015 the New Hampshire House of Representatives considered, but ultimately rejected, a bill to set up a retirement savings program for employees who do not have access to a retirement plan through their employer.  The Finance Committee recommended killing the bill after finding out about a recently established federal program, myRA, which serves a similar purpose. 

However, myRA has a relatively low rate of return and caps contributions at $15,000. Treasury officials have said that myRA is intended as "a bridge to private sector savings" rather than a full-fledged retirement account. 

Do you think New Hampshire should set up a program to encourage private retirement savings? Let us know in the comments.