Colorado Law Would Encourage Saving

A bill has been introduced in the Colorado Legislature that would help workers save now for a better future.

Known as the Colorado Secure Savings Plan, HB 1403, sponsored by Representatives Janet Buckner and Brittney Petterson, would increase the number of working Coloradans enrolled in retirement plans by creating a retirement savings plan through employers who currently do not offer a work-place retirement savings plan.

Today a secure retirement is out of reach for thousands of Coloradans, especially those who work for small businesses. Consider the following:

• Nearly half of Baby Boomers and Gen-Xers will lack the income to meet the basic retirement expenses and health care costs.
• More than 70 percent of workers employed by businesses with fewer than 100 employees do not have a pension or retirement plan.
• The typical working-age household has only $3,000 in retirement assets and retirement households only have $12,000.
• The average monthly Social Security benefit in Colorado is only $1,235 per month. While Social Security is a critical piece of the puzzle, it is not enough savings to ensure people can live independently as they get older.

How can we make it easier for Coloradans to save so they can live a comfortable retirement? AARP has a commonsense solution.

AARP Colorado is working with the Colorado Legislature to get HB 1403, the Colorado Secure Savings Plan, passed. By giving employees the option to save privately, this plan gives savers the power to control their future.

Why do Coloradans need this?

• Social Security isn’t enough to depend on.
• Accounts are voluntary.
• The account follows you when switching jobs.
• A work-based savings plan makes it easier for small businesses to create a basic retirement savings option for employees.
• By giving employees the option to save privately and automatically, workers have more control of their financial future.
• Giving employees a simple way to save for retirements means fewer workers relying on government safety net services, which saves taxpayer dollars.

For more information, call Kelli Fritts at 303-764-5991.