The financial feasibility studies conducted on state-sponsored retirement plans in California, Connecticut, and Oregon indicate that auto-IRAs can be self-sufficient while charging attractive participant fees over the long run. These states used consultants to study market demand, estimate likely participation rates, advise on plan design, and determine whether the plan could achieve financial self-sufficiency based solely on participant fees. All three studies project that programs will break even in 3 to 5 years, depending on the study, and fully pay off any startup financing in 6 to 7 years.
