Work and Save Plan Would Benefit Employees

Tucker, Jeannie - JTTucker

Small businesses employ nearly half of U.S. private-sector workers, and many employers do not offer a retirement savings plan. That’s why AARP Arkansas is urging state legislators to create a Work and Save plan.

Participating employers would enroll their employees in the plan and automatically deduct contributions from their paychecks (unless the worker wants to opt out). There would be no ongoing costs for employers, and the accounts would be portable, allowing workers to take their funds with them when they change jobs.

An estimated 530,000 Arkansans—more than half of those ages 18 to 64—do not have access to a retirement savings plan at work. A 2017 AARP survey found that 74 percent of small businesses support creating some kind of privately managed plan.

For more information, go to aarp.org/workandsave.