AARP Illinois is backing legislation that would require companies that have been in business at least two years and have more than 10 employees to establish an automatic IRA. Employees would be enrolled in the IRA unless they choose to opt out. Businesses would not be required to make matching contributions.
“Unfortunately, many Illinois employers do not offer a retirement savings plan—and workers at such companies are less likely to save for retirement,” said Ryan Gruenenfelder, AARP state advocacy manager.
More than half of Illinois workers (53.4 percent) lacked access to a job-based retirement plan in 2010, according to the Woodstock Institute, a nonprofit organization based in Chicago.
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