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AARP Georgia Announces Introduction of Retirement Security Bill

 

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Senator Charlie Bethel, Chair of the Georgia Senate Insurance and Labor Committee has introduced SR 736, which would create a legislative study committee to examine the retirement needs of working Georgians and determine the feasibility of creating a “Work and Save” plan in the state. Currently, one out of every two workers in the State of Georgia does not have a way to save for retirement at work. A “Work and Save” plan would give those employees a simple way to build their own private savings, and could make them less likely to rely on government safety net services, which would save taxpayer dollars.

Nine other states have already passed legislation to examine or create a “Work and Save” plan which would provide a way for all employed residents to save for retirement via payroll deduction at work, similar to a 529 college savings plan. Research shows that an individual is over 15 times more likely to save for retirement if the employer offers a plan than if they must find an IRA on their own. On average, Georgia retirees receive only about $1,200 a month from Social Security, causing workers to rely on employer-sponsored retirement plans to supplement their income as they age.

“We are delighted by the introduction of this important legislation,” said Debra Tyler-Horton, AARP Georgia State Director. “We are one step closer to providing the 1.7 million Georgians who do not have a way to save for retirement at work with a commonsense solution to take charge of their financial future.”

According to the National Institute on Retirement Security, the typical working-age household has only $3,000 in retirement savings. Employees participate in retirement savings programs at a rate of 71.5% when they can do so through payroll deduction. [1]  AARP is working to provide Georgians with a financial security strategy to ensure choice, savings ease, and portability.

[1] Data compiled by AARP’s Public Policy Institute from unpublished estimates from the Employee Benefit Research Institute of the 2004 Survey of income and Program Participation Wave 7 Topical Module (2006 data).

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