AARP MAINE today released a survey of 602 registered voters aged 25 to 64 who say they are not financially prepared for retirement. Nearly all respondents aged 35 and over (90%) wish they had more money saved for retirement, and 88% of respondents also believe it is very important to be able to save for retirement while working.
To address this issue for our 230,000 members, AARP Maine supports a bill to help people save more for retirement: LD – 594, A Retirement Savings Program for Maine.
LD 594 makes it easier for businesses to offer employees a way to save for retirement out of their regular paycheck, and it is an easy, stress-free way to grow retirement savings so you can take control of your future.
“A secure retirement is out of reach for thousands of Maine residents, especially those who work for themselves or small businesses,” said Lori Parham, AARP Maine State Director. “While Social Security is a critical piece of the puzzle, it is not enough to depend upon. Many future retirees will not be able to handle the rising cost of basic needs and health care and that’s why we need LD 594 passed into law.”
This issue is a top priority for AARP Maine during the 2020 legislative session. On average, Maine working households have less than $2,500 in retirement savings.
“More than 235,000 Maine workers don’t have a way to save through their employer,” said Parham. “As the oldest state in the nation we can, and must, do better. The bill we support, LD 594, will put Maine on the right track.”
Data from the AARP Maine survey shows that a majority (66%) of respondents report feeling anxious about having enough money for retirement while over half (53%) are not confident they will have enough money to cover healthcare expenses in their retirement years.
The survey showed wide support for a public-private managed state retirement savings option. Nearly all (86%) agree that elected officials should support legislation that would make it easier for small businesses to offer employees a way to save for retirement. Yet, 46% of workers age 18-64 (about 235,000) work for an employer that does not offer a retirement savings program. The majority (84%) of respondents with no current access to an employer savings plan said it was likely they would take advantage of an employer offered savings plan.
As taxpayers, most (81%) of the survey respondents are concerned that some Maine residents have not saved enough for retirement and could end up being forced to rely on public assistance programs.
To learn more about the bill, read our blog post!