Retirement Should be Within Everyone's Reach - AARP urges Legislature to pass "Secure Choice Retirement Savings" plan
According to a new AARP state survey, two-thirds (66%) of Washington registered voters feel anxious about having enough money to live comfortably throughout their retirement years – and for a good reason. AARP’s survey of voters ages 25 to 64 showed that more than a third (35%) have saved less than $25,000 for retirement. Almost one quarter (22%) have less than $5,000 saved.
“Washingtonians are working as hard as ever, but many do not have a way to save for retirement out of their regular paycheck,” said Cathy MacCaul, AARP Washington Advocacy Director. “Our survey shows that nearly all Washington voters (91%) believe it is very important to be able to save for retirement while working. Yet more than 1.1 million Washingtonians work for an employer that does not offer a retirement plan.”
To help tackle Washington’s retirement saving crisis, AARP has launched a series of efforts encouraging workers and employers to contact their legislators in support of Senate Bill 5740, the “Secure Choice Retirement Savings Program.”
The Secure Choice program is a self-sustaining, easy way for workers to save for the future out of their regular paycheck. Workers can save for retirement on their terms. Employees have full control over how much they want to put away and what they want to invest in. Also, employee retirement savings are portable, allowing the account to follow them even if they change jobs. According to AARP’s survey, ninety-one percent of respondents without a current way to save for retirement say they would take advantage of a workplace savings program if it were available.
This type of savings program has been adopted in Oregon, Illinois, and California. New Jersey, Maryland, and Connecticut plan to launch similar programs soon. And 16 other states are currently exploring the option.
“The insurance industry is lobbying hard against this measure, interested more in increasing their sales and bottom lines than in the welfare of Washington workers and small business,” says MacCaul. “That is why AARP Washington is urging our elected lawmakers to pass this legislation to help make businesses in the Evergreen state more competitive and to give more Washington residents an easy way to save for their retirement.” The majority of Washington voters (82%) surveyed by AARP agree that Washington elected officials should support legislation to make it easier for workers to save for retirement.
According to AARP’s survey, more than half (57%) of Washington voters feel they are behind schedule for planning and saving for their retirement. The majority (81%) are concerned that increases to their cost of living expenses will reduce their standard of living in retirement.“
Without better savings options in place, Washington workers are betting their retirement futures on a wish and a prayer,” said MacCaul. More than a quarter of Washington voters (28%) say they plan on starting a new business to make up their savings shortfall. Four-in-ten (43%) say they will need to get a new job. Nearly one-in-five (17%) of respondents are counting on receiving an inheritance, and seven-percent are feeling lucky and say they will win the lottery.
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ACTION ALERT: Senate Bill 5740, the "Secure Choice Retirements Savings Program" is currently before the House Appropriations Committee. Your elected officials need to hear from you! Please click here to direct a message to your legislators and let them know that a secure retirement should be within everyone's reach.
