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Let's Make it Easier to Save for Retirement

Saving for Retirement
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Tell Your Legislator: It's Time to Make it Easier to Save for Retirement with a Public-Private Retirement Savings Option.

Contact Your Legislator and Tell Them to Support House Bill 5461!

Click the link above


According to a 2021 AARP survey, 60% of Michigan registered voters aged 25-64 feel anxious about having enough money to live comfortably through their retirement years, and half say they are behind schedule for planning and saving for retirement.

Inadequate retirement saving also impacts the state budget, because when individuals don’t have enough retirement savings to live on, they are more likely to rely on public assistance programs. An analysis by the AARP Public Policy Institute estimates the State of Michigan could save $81.7 million over 15 years if lower-income retirees saved enough to increase their retirement income by $1,000 per year.

Currently, about 42% of Michigan workers aged 18-64 in the private sector work for businesses that do not offer a retirement plan. In raw numbers, about 813,000 small-business employees in Michigan do not have access to a retirement plan at work, and about 751,000 workers at businesses with 100 or more workers do not have access to a retirement plan. This is key because research shows that saving at work is critical. Fewer than 10% of households regularly contribute to an Individual Retirement Plan outside of their jobs. However, when offered the opportunity to save for their retirement through a payroll deduction plan at work, 7 out of 10 people choose to participate.

According to a 2023 survey of more than 500 Michigan small businesses with between 1 and 150 employees, 79% of small business owners said being able to offer a voluntary, portable, retirement savings program would help them attract and retain quality employees and stay competitive. 73% said they would support the creation of a privately managed, plug-and-play retirement savings option to allow employees to save for their future through their paycheck.

Similar public-private retirement savings programs have already been successfully implemented in Oregon, California, Illinois, Delaware and Hawaii. Additionally, Missouri, Minnesota and Nevada have recently passed legislation to establish them.

What's Next

The message is clear – the time for a state-sponsored retirement savings program is now. With over 40% of private-sector workers lacking access to retirement plans, the anxiety about financial security in retirement is palpable. AARP Michigan's call for action seeks to address these concerns by providing a practical and voluntary solution that empowers workers to secure their financial future. It's time for Michigan to join the ranks of states offering accessible retirement options and pave the way for a more secure tomorrow for all its residents.

Contact your legislator today!

Click here to join the Call for Action!

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