Bill Would Give 642,000 Hard-Working Oregonians Access to a More Secure, Independent Retirement
Almost six in ten Oregon small business owners support legislation that would create a retirement savings option for private-sector employees who do not have access to a workplace retirement plan, according to a new AARP survey.
The survey, conducted by the American Institute of Consumer Students, talked to 452 non-franchise small business owners with 1-100 employees. The business owners were located throughout the state of Oregon and were a mix of ideology (41% conservative, 24% moderate, 25% liberal), gender, age, tenure and more.
The survey found that three in five small business owners do not currently provide a retirement savings plan to their employees, and about a quarter do not even have a retirement savings plan for themselves.
“Small businesses are the backbone of Oregon’s economy. Yet unfortunately, many small business owners and employees are struggling to save for retirement,”
“Small businesses are the backbone of Oregon’s economy. Yet unfortunately, many small business owners and employees are struggling to save for retirement,” said Jerry Cohen, State Director for AARP Oregon. “Many business owners tell us they would like to offer their employees a way to save for the future, but are afraid a plan will be too costly or time-consuming to administer. That is why AARP Oregon is proud to endorse HB 2960.”
HB 2960 would create the Oregon Retirement Savings Board and provide an opportunity for private-sector workers to voluntarily enroll in a retirement savings account and make contributions to their account through automatic payroll deductions. The accounts would be managed by a private-sector financial institution. The state of Oregon would oversee the program with no cost to taxpayers. The accounts would be portable so that participants can keep their account even if they switch employers.
Employees would get an easy, convenient way to save on the job, and owners would get a turnkey solution to offer retirement benefits to their employees. It would give their business a competitive edge in the marketplace and help with employee recruitment and retention.”
“The accounts would be a win-win for small businesses owners and employees,” continued Cohen. “Employees would get an easy, convenient way to save on the job, and owners would get a turnkey solution to offer retirement benefits to their employees. It would give their business a competitive edge in the marketplace and help with employee recruitment and retention.”
Oregon small business owners agree that saving at the workplace is important. 57% are concerned that their employees will not have enough money to cover their living expenses when they retire – and the statistics bear this out. An astounding 92% of working households fail to meet conservative retirement savings targets for their age and income based on 401(k)–type accounts and IRA balances.
64% of those surveyed believe that the state of Oregon should be doing more to encourage residents to save for retirement .Workers are 15 times more likely to save for retirement if they have access to a workplace retirement savings program. AARP Oregon will keep fighting to pass HB 2960 and give 642,000 hard-working Oregonians access to a more secure, independent retirement.
To see the full survey results, please visit http://action.aarp.org/OregonWorkandSave