A Push to Boost Retirement Savings

Mark Armstrong, who owns a Wow 1-Day Painting franchise in Raleigh, is committed to making his business a good place to work for his four employees. But he says providing benefits such as a 401(k) or another retirement plan is beyond the financial reach of his small company.

That’s why Armstrong, 52, is supporting the creation of a state-facilitated retirement savings option in North Carolina.

The program would provide employees at small companies a way to voluntarily contribute to a retirement account, typically a Roth IRA, through automatic payroll deductions.

Winning passage of a bill to create the “work-and-save” program is one of several key legislative priorities for AARP North Carolina during the 2025 legislative session, says Chris Brandenburg, the group’s manager of federal and state advocacy.

Nearly half of North Carolina’s private sector employees—about 1.8 million people—do not have access to either a traditional pension or a retirement savings plan through their employer, according to a 2022 analysis by the AARP Public Policy Institute. That includes 79 percent of workers at companies with fewer than 10 employees.

A state-facilitated option would give workers a way “to start the process of building a nest egg,” Brandenburg says.

It would be run by a private investment company and overseen by a state board. Enrollment would be voluntary for businesses and employees; workers could take their retirement account with them if they switched jobs.

A national push

Armstrong says the retirement option would help his employees and his company. “If they believe that you are looking out for their best interests, then they’re going to reciprocate and look out for your best interests,” he says.

Nationwide, AARP has pushed state legislators to create state-facilitated retirement savings programs, with a preference for automatic workplace enrollment. As of July 1, 2024, 17 states already offer or have approved automatic IRA programs, and another three have enacted voluntary work-and-save programs, according to the Georgetown University’s Center for Retirement Initiatives.

Americans are far more likely to save for retirement when they have a workplace plan with automatic deductions, AARP research shows.

In North Carolina, a work-and-save bill introduced in the state House in 2023 did not get a vote on the floor. But state Rep. Jarrod Lowery (R-Robeson), one of its sponsors, says he is optimistic the proposal will advance when he reintroduces it this year. That’s because he’s talked to legislative leaders about “how this could potentially save the state millions down the road,” Lowery says.

“This isn’t the state paying for retirement,” he notes. “This is the individual saying, ‘You know what? I have an option.’ And so we’re empowering people.”

He notes that helping workers save for retirement means they will be less likely to need public assistance later in life—whether that’s government-supported health insurance or food aid.

Also, Lowery says a previous obstacle—the question of which state agency should house the program—has now been resolved, with a consensus to put it under the state treasurer’s office.

Boosting nurses, housing 

AARP is also hoping state lawmakers will address the health care workforce shortage and housing affordability crisis in 2025.

One measure that could tackle the former is a bill to give nurse practitioners and other advanced practice registered nurses more flexibility to provide patient care. Under current law, these nurses—who have post-graduate education and specialized training—must have a “practice agreement” with a supervising physician, usually at a cost to the nurse.

Brandenburg says the requirement is outdated. Although the bill has not passed in previous years, he says support is building.

In 2016, the U.S. Department of Veterans Affairs gave most advanced practice nurses the authority to provide care to the full extent of their training and expertise. More than two dozen states have granted nurse practitioners such authority.

Ying Xue, a professor in the University of Rochester’s School of Nursing who has studied the impact of such laws, says lifting restrictions on advanced practice nurses can help fill a gap in “health care delivery and access where the need is greatest.”

AARP also plans to push for legislation to ease barriers to the construction and use of accessory dwelling units. ADUs are small units that sit on the same lot as a single-family home, such as in-law suites or garage apartments.

The focus on these three issues can help ensure that “everyone has a safe place to call home, the care they need and the opportunity to thrive,” Brandenburg says. ■

Michelle Crouch is a North Carolina-based journalist who covers health care and consumer issues. She has written for the Bulletin for 10 years.

Also of interest:

• 5 Retirement Fears and How to Conquer Them
• 5 Features to Help You Make the Most Out of Your 401(k)
• Why Retirees Are Carrying More and More Debt