It’s National Savings Day – the one day a year set aside to remind us of the importance of saving and reflect on our own savings habits. At AARP, we don’t need a national holiday to remind us just how vital saving for the future is. We know that saving for retirement is one of the most important things you can do for your future, and we work 365 days a year to provide resources to help you plan and grow your savings. But, we can’t do it alone. That’s why this National Savings Day, we are calling on Ohio lawmakers to create a Work and Save program to make saving for the future easier for everyone.
Ohioans can’t save for retirement out of their regular paycheck, even though having access to payroll deduction makes people 15 times more likely to save. The Work and Save programs passed by 14 states – and proposed by dozens more – can fix that.
Work and Save Programs provides an easy way for workers to save out of their regular paycheck and helps them grow the savings they need to take control of their future. The programs are available to workers who don’t currently have a plan through their job – and generally run like a 529 college savings plan.
While Social Security is a critical piece of the puzzle, it is not enough to depend on. The average Social Security benefit for a 65+ Ohio family is only about $19,185 per year, even though these families spend over $23,076 a year on food, utilities, and health care alone.
At this rate, one out of every two households won’t be able to afford their basic needs in their later years.
We need to help Ohio workers grow their retirement savings so they can live independently as they age. It’s time for our Ohio lawmakers to create a Work and Save program to give employees of all ages the opportunity to grow their savings and take control of their future.