Retirement Savings Plan Could Reduce Poverty

David Franklin

Many people want a secure retirement, but not everyone has the right tools to achieve it. AARP North Carolina is asking state lawmakers to set up a retirement savings plan for people who don’t have access to a 401(k) or similar plan at work.

The proposal, called Work and Save, would give small businesses a way to let their workers save for retirement through automatic payroll deductions. Participation would be voluntary for employees. The program would reimburse employers for expenses and could save the state millions by lifting more retired North Carolinians out of poverty.

People who have a savings plan at work are 15 times more likely to save for retirement than those without a work-based plan. Without Social Security, more than half of North Carolinians 65 and older would be living in poverty.

To sign up for action alerts about the legislation, go to action.aarp.org.