AARP: Secure Choice Will Help NYers Save at Work, Close Growing Retirement Savings Gap

AARP Applauds Governor, Legislators for Including Voluntary Workplace Retirement Savings Option in Final 2018-19 Budget

ALBANY, N.Y. – AARP New York State Director Beth Finkel issued the following statement today on the final 2018-19 New York State Budget:

“Secure Choice will offer hard working men and women across New York an easy and effective way to save for their futures through payroll deduction. And it’s a great tool for small companies to attract and retain quality workers.

As fewer small businesses are able to offer employees savings plans, we need to close the growing retirement savings gap. Social Security alone isn’t enough, and the average household only has $2,500 saved for retirement, with the average household near retirement not much better at just $14,500.

AARP thanks Governor Cuomo for his leadership in proposing this game-changing program in his executive budget. We applaud the Governor, Senate Leader Flanagan, Assembly Speaker Heastie and their houses for including Secure Choice as part of the final state budget ( see pages 7-15), which was approved by the Legislature earlier today and is expected to be signed by the Governor.

AARP thanks Senator Savino and Assemblymember Rodriguez for sponsoring this program in the Legislature and for their leadership in advancing the proposal in their respective houses.

AARP will be working to encourage small businesses to opt in to Secure Choice and give their employees the chance to start saving. We expect many companies will; nearly three quarters of small businesses that don’t provide their own savings plan said they probably would offer a state-facilitated option if one became available. And Americans are 15 times likelier to save if they can do so through work.

Secure Choice has the potential to help more than 3.5 million private sector employees in New York who work for a company that offers no pension, no 401(k), no retirement savings option. That’s over half the workforce – including 67% of Hispanics, 60% of Asian Americans and 52% of African Americans.

Modeled on the state’s successful 529 college savings program to lend a hand to New Yorkers to save for a college education, Secure Choice is good for business, good for working New Yorkers and good for taxpayers - since it will help more New Yorkers build financial security and lessen their future reliance on public assistance.”

Contact: Erik Kriss, ekriss@aarp.org

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AARP is a nonprofit, nonpartisan organization, with a membership of nearly 38 million that helps people turn their goals and dreams into 'Real Possibilities' by changing the way America defines aging. With staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen communities and promote the issues that matter most to families such as healthcare security, financial security and personal fulfillment. AARP also advocates for individuals in the marketplace by selecting products and services of high quality and value to carry the AARP name.  As a trusted source for news and information, AARP produces the world’s largest circulation magazine, AARP The Magazine and AARP Bulletin. AARP does not endorse candidates for public office or make contributions to political campaigns or candidates. To learn more, visit www.aarp.org or follow @AARP and our CEO @JoAnn_Jenkins on Twitter.