Submitted by Aaron Keating (not verified) on July 22, 2008 - 2:25pm.
A number of states (most notably California, but others as well) are exploring a "Universal Retirement Savings Account" (URSA) model.
The basic idea is to use a state’s existing retirement or investment infrastructure to pool the investments of thousands of workers at small- and medium-sized businesses. The result? Extremely low fees; professional fund management; automatic investment options; and a portable retirement plan that helps smaller businesses compete with the big boys on the block.
URSAs aren't intended to replace current retirement plans. They are designed for individuals and businesses without workplace-based retirement investing. It's a supplement to Social Security (which provides a defined benefit pension for older Americans, but alone is barely enough to keep many retirees out of poverty).
Universal retirement savings accounts
A number of states (most notably California, but others as well) are exploring a "Universal Retirement Savings Account" (URSA) model.
The basic idea is to use a state’s existing retirement or investment infrastructure to pool the investments of thousands of workers at small- and medium-sized businesses. The result? Extremely low fees; professional fund management; automatic investment options; and a portable retirement plan that helps smaller businesses compete with the big boys on the block.
URSAs aren't intended to replace current retirement plans. They are designed for individuals and businesses without workplace-based retirement investing. It's a supplement to Social Security (which provides a defined benefit pension for older Americans, but alone is barely enough to keep many retirees out of poverty).