PhillySaves: A Path to a Secure Retirement

Philadelphia City Council is currently considering Bill #250651 to create the Philadelphia Retirement Savings Program. AARP is calling the program PhillySaves, which will provide an estimated 208,000 Philadelphia workers an easy way to save for retirement on the job through a public-private partnership.

AARP knows that Americans are 15 times more likely to save for retirement if they have a savings account at work, and 20 times more likely if that savings is automatic. PhillySaves would allow workers to save as much or as little as they want in their accounts through automatic deductions from their paychecks and take it with them if they change jobs.

When employees have the tools to save, they build a stronger future for themselves and their families. It’s time to ensure workers in Philadelphia have a path to a secure retirement.

Without retirement savings accounts, hard-working Philadelphians will count on Social Security even more for financial security. However, Social Security alone is not enough for them to depend on as a sole source of retirement income.

The average Social Security income for a 65+ Philadelphia family is about $21,000 per year.

Many older homeowners are cost-burdened – paying approximately $25,000 for utilities, health care, housing and maintenance.

That’s why AARP is advocating for PhillySaves.

Building a Stronger Future for Philadelphia Workers

Only 48 percent (less than half) of all Philadelphia workers ages 25-64 had access to an employer sponsored retirement savings plan, compared with 53 percent of workers nationwide.

A June 2025 Pew issue brief revealed that the median income for older households (65+) in Philadelphia was $51,000, lower than the national median of $56,000. Additionally, only 47% of older Philadelphians received retirement income (such as from 401(k)s and pensions), compared to 58% nationwide.

What is a Public-Private Retirement Savings Partnership?

It’s a commonsense solution that provides workers with a voluntary way to save for retirement at work, rather than facing dependency on public assistance.

Elected Philadelphia city officials can create a public-private retirement savings partnership that is overseen by the city and run by a private sector financial services provider. A worker owns their account and can take it from job to job, while saving as much or as little as they want through paycheck deductions. The accounts are voluntary for employees

Promoting Fiscal Responsibility

PhillySaves would require no ongoing costs for Philadelphia: A public-private retirement savings partnership will be self-sustaining, and participant-funded. The funds cannot be commingled with public pension dollars, nor can they add to Philadelphia’s public pension liability.

Saving Taxpayer Dollars: It also saves the state money.

Providing a way for workers to save on the job reduces reliance on taxpayer-funded assistance programs in retirement - and decreases the financial burden on government.