CalSavers' growth in assets continues apace, and they now amount to more than half a billion dollars; registrations are growing too, but not in as dramatic a fashion.
CalSavers Assets Hit Half Billion
April, it has been said, is the cruelest month. No offense to Chaucer, but CalSavers — the Golden State’s state-run retirement plan for private-sector employees whose employer do not offer one — may beg to differ. In the fourth month of 2023 its total assets surpassed half a billion dollars.
More precisely, CalSavers reports that as of April 30, 2023, its total assets amounted to $501,206,338. That was more than $27 million more than at the end of March; assets grew by almost 6% from March to April. Assets had started 2023 at $372,979,988 — spelling growth in assets of $128,226,350 from Jan. 1 to April 30, a 34% jump.
Growth. By other measures CalSavers showed growth in April as well, although it was more gentle.
Spinning Tires. By some measures, CalSavers did not show growth in April.
Withdrawals. Employees have the option of withdrawing funds from their CalsSavers accounts. Those also grew from March to April.
It is worth noting that while there were more full withdrawals than partial withdrawals, the latter grew more than the former in April.
Opt-outs. Employees also have the option of withdrawing from the program completely. The rate at which they did so slowed from March to April. The opt-out rate fell from 36.5% in March to 36.34% in April, a drop of 0.16 percentage points, or 4%.
CalSavers Growth in Assets Outstrips New Registrations
CalSavers, the state-run retirement plan that covers private-sector employees whose employers don’t offer a plan, is growing — but so far this year, the expansion in assets is outstripping that of registrations.
Registrations. Month-to-month growth in employer registrations was still relatively robust as 2022 ground to a close and 2023 began:
But since then, more than six months after the last employer deadline, that month-to-month growth is much slower:
Month-to-month growth in CalSavers’ total assets was strong as the old year ended and the new one began:
Since then, month-to-month growth is somewhat slower, but nonetheless grew at a far greater pace than that of employer registrations during the same period:
This could simply reflect the fact that the deadlines for registration have long since passed. The initial rush to register with the program may simply have waned.
CalSavers was launched on July 1, 2019. Registration had been rolled out gradually, based on thesize of an employer’s workforce. The first deadline by which employers were to register with CalSavers or offer a plan of their own was Sept. 30, 2020, and applied to employers with 100 or more employees; the most recent one, the deadline by which employers in California with five or more employees had to offer a plan or else — was June 30, 2022.
At the same time, the revenue from the increasing pool of employers grew, as did the effect of compounding.