AARP/Retirement Research Center Study: “The Effect of a Universal Automatic IRA with Emergency Savings on Household Wealth.”Background: As introduced in Part 1, a 2022 AARP study found that nearly half of private sector workers lack access to an employer-sponsored retirement plan. However, this figure is disproportionately higher among Hispanic (64%) and Black workers (53%). Additionally, 81% of those earning less than $50,000 per year work for an employer that does not offer a retirement plan.This research investigated the impact of Auto IRAs with emergency savings on various demographic groups, with a focus on understanding the role of default saving behavior and income in shaping retirement outcomes. It quantified the impact of such a programon projected household wealth and liquid assets. Please see Part I for additional methodological details.Findings: This study found that while median household wealth for all households grew by 69%, Black and Hispanic households saw an increase of 89%. This improvement was even more pronounced for younger Black and Hispanic workers whose household wealth rose by 125% as compared to 109% for younger white workers. Even under various pessimistic assumptions, their median household wealth grew from between 22% and 69%.Bottom Line: This research indicates that a universal Auto IRA with emergency savings could produce significant improvements in household wealth, especially for younger Black and Hispanic workers.RRC members are welcome to reach out about being a future guest contributor to the Research Minute - contact rrc@dciia.org.