ESI was commissioned by the Colorado Secure Savings Plan Board to study the economic and fiscal impacts of insufficient retirement savings in Colorado. The Secure Savings Board was created by the state legislature to evaluate options for addressing inadequate retirement preparedness among private sector workers. This analysis was intended to quantify the long-term fiscal consequences to the state of the continuation of existing retirement savings and readiness trends, informing the Board’s recommendations to the Colorado Legislature.
ESI developed a financial model assessing the retirement income gap among Colorado’s senior households relative to standard income replacement benchmarks using a mix of data sources primarily from the US Census Bureau. Through comparison of historic and current income data, an average income shortfall of $4,800 per year was identified for Colorado households aged 65. A financial model using assumptions for earnings, contribution, and investment return rates found that this gap was addressable through approximately $1,200 in annual savings over a 30-year period.
ESI then conducted economic and fiscal analysis of this gap based on household expenditure data and analysis of state program spending. The analysis found that the cumulative net fiscal impact of insufficient retirement savings would total nearly $10 billion to the State of Colorado over the 2021-2035 period through a combination of increased state program costs and reduced tax revenue.
ESI produced an economic and fiscal impact report on insufficient retirement savings in Colorado, which was incorporated into the Secure Savings Plan Board’s February 2020 report and recommendations to the Colorado Legislature. The state subsequently created the Colorado Secure Choice program to address the identified retirement preparedness gap. As of 2026 the program has more than 100,000 contributors in the state of Colorado and has also expanded into a multi-state partnership.