No Retirement Plan at Work? An Automated Savings Program Can Fix That
8Americans from all walks of life work hard to save for retirement. However, nearly half of private-sector employees—tens of millions of workers—do not have access to retirement savings through their jobs. Automated savings programs, also known as auto IRAs, can help employers provide access to retirement savings options without any cost or hardship to small business owners and taxpayers. These programs not only help small businesses retain top talent, but they also lessen states’ and taxpayers’ burden by reducing the amount of social assistance needed to help workers after they retire.
For more information on automated savings programs, visit www.pewtrusts.org/statesavings.
TRANSCRIPT
Emilio and Sarah love what they do for a living.
Emilio works for a small company that makes squares.
Sarah designs triangles for her job.
The good news for Emilio is that his employer offers a retirement plan to its workers.
Emilio has the peace of mind that he’s saving for the future while he focuses on what he does best.
Unlike Emilio – Sarah’s employer doesn’t offer a retirement plan.
Sarah isn’t alone. Tens of millions of private sector workers don’t have access to retirement savings at work.
And without saving for her future – Sarah, like others in her shoes, could find herself in real financial trouble at retirement age.
Sarah’s boss Aretha wants to offer a savings plan for her workers. But, as a small business owner, she struggles to find the resources necessary to set up an affordable plan.
But if Aretha’s state establishes an automated savings program for companies – she wouldn’t have to worry about any of that headache.
These state programs are zero cost to the employer and the setup is extremely simple.
This is great for bosses like Aretha who want to retain and recruit all stars like Sarah.
Sarah can start saving automatically and opt out at any point. As a bonus, if she faces an unexpected expense along the way, she can use her savings tax and penalty free.
And the account moves with Sarah wherever her career path leads.
With state programs like these – hard workers like Sarah are set up for long-term success, just like Emilio.
And no matter what your job is, it sure feels good to know that your financial future is in great shape.
END