Workers have $2.75 billion in state-run retirement accounts — what to know as Minnesota, Hawaii set to launch plans

The list of states that have launched retirement programs for private-sector workers continues to grow.

This year, Minnesota and Hawaii will become the 17th and 18th states to provide a way for workers without access to a 401(k) or other workplace plan to save for retirement through their job. Minnesota’s program opened Jan. 1 and will begin enrolling workers Jan. 19, and Hawaii plans to launch its version later this year. In general, these state-run options require all but the smallest employers to either offer their own retirement plan or facilitate worker enrollment in their state’s option.

Although there are some minor differences among these programs, most involve employees being automatically enrolled in Roth individual retirement accounts through a payroll deduction — starting around 3% or 5% — unless they opt out. There is generally no cost to employers, and these so-called auto-IRAs are managed by an investment company.

An estimated 53.7 million full-time and part-time workers between the ages of 18 and 65 lack access to any employer-based retirement plan, according to 2025 research from the Economic Innovation Group, a bipartisan public policy group. The state-run retirement programs help fill that gap.