Philadelphia Launches Nation's First City-Sponsored Retirement Plan

Philadelphia has launched the nation's first city-sponsored retirement plan for workers without employer benefits, approved by voters on May 19. The PhillySaves program requires employers to enroll workers in an automatic IRA, with an opt-out option.

It aims to improve financial literacy and build generational wealth. Key facts: - Over 50 million Americans lack workplace retirement plans.

- The program joins 15 states with similar auto-IRA plans, saving $3 billion collectively. - Studies show automatic enrollment increases participation rates.

- Supporters include AARP and the Chamber of Commerce, while some business groups oppose it as burdensome. The program is expected to help low-income workers save for retirement and qualify for federal tax credits.