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Workplace retirement savings accounts can help Tar Heels remain financially independent as we age

Today, a secure retirement is out of reach for millions of Americans, especially those who work for small businesses. Nearly two million Tar Heels have no access to a retirement savings plan through their employers - that’s about 50% of the 18 to 64-year-old population.

That is why the NC House of Representatives unanimously passed (108-0) HB604, a study bill introduced by Representatives Jon Hardister (R), Bobby Hanig (R), and   Stephen M. Ross (R),  so North Carolina can find the best ways to make it easier for North Carolinians to save so they can live the lives they want in retirement. AARP is now urging the NC Senate to pass the study bill so the state can begin its research and begin developing a plan.

Cropped Hand Putting Money Into Piggy Bank By Coins Stack On Table
Getty Images/EyeEm

Commonsense solution

A workplace retirement savings plan is a commonsense solution that makes it easier for businesses to create a private retirement savings account for employees, helping them take charge of their financial futures and live independently as they age.

When workers have access to payroll deductions for retirement savings, they are 15 times more likely to save.

Easier ways to save promotes financial freedom:

For retirees, Social Security alone isn’t enough to depend on. The average monthly Social Security benefit is only about $1,200 per month. While Social Security is a critical piece of the puzzle, it is not enough savings to ensure people can live independently as they get older.

Workplace retirement savings accounts make it easier for workers to grow the additional savings they will need to live a secure and independent future.

Ten other states have set up plans that are:

Voluntary: It’s up to employees to decide if they want to participate.

Give Employees Control: Accounts are portable. When employees switch jobs, they can take their retirement savings accounts with them.

Save Taxpayer Dollars: Giving employees a simple way to save for retirement will mean fewer Americans will need to rely on government safety net services, which will save taxpayer dollars.

No Risk to the Employer: A savings plan would be easy for employers to set up, and there would be no ongoing costs or risk to the employers or the state.

Learn more about AARP’s efforts on the retirement savings study and what’s happening in North Carolina by signing up for free Advocacy Alerts.

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