Oregon again leads the way - The Oregon Retirement Savings Plan

 

By Rep. Tobias Read

When I came to Oregon years ago as a student at Willamette University, I was inspired by our motto of service and the dedication to a healthy and supportive community. As I grew to love my adopted home state, it became clear to me that this is a special place, one that deserves leaders who think ahead toward sustainable, long-run solutions that offer everyone an opportunity to thrive. I think Oregonians have rightly come to expect it from those we elect to public office.

 

In the wake of the worst recession in our lifetime, study after study confirms that retirement is among the things Americans fear most. And they’re right to worry. Because far too many Americans — and far too many Oregonians — are unable to save for retirement.

 

As I travel the state and meet new people, it’s clear that many are still struggling to pay the bills, much less set aside savings. When living paycheck to paycheck, saving for the future can appear to be a luxury. This is setting us up for tremendous problems down the road. We see more and more people working well into what used to be considered retirement age. Nearly one in five Oregonians over the age of 65 were working or seeking work last year, among those, 65 to 69, the rate is even higher, at one in three, with a trend that is likely to continue. ^[1]

 

People who have worked their entire lives are retiring into poverty. And that’s even more true for low-wage workers, women, and communities of color. It’s certainly a problem for individual Oregonians, but it also puts strains on our budget. If people start saving earlier, we can expand our resources for schools, universities, infrastructure, or other necessities. And we can help people retire with dignity.

 

This is the very problem we set out to tackle during the 2015 legislative session. With the help of organizations like AARP, we passed the “Save Today, Secure Tomorrow” bill, which helps Oregonians do what’s in their own best interest by taking control of their own financial future.

 

Our new law created the Oregon Retirement Savings Board, led by the Oregon State Treasurer. I serve on the Board, where we’re developing a retirement savings plan that automatically enrolls Oregonians who don’t have access to a plan at their workplace. It’s a defined contribution plan, with no liabilities to the state. The program will be opt-out, rather than opt-in, and those who choose to participate will have a retirement savings account that will move with them if they change jobs. It will be funded by participants’ contributions so costs will remain low, because they will be pooled with thousands of other participating Oregonians.

 

Saving enough money for retirement is difficult, but truly necessary. The longer we wait to save, the more expensive it will become. If we’re serious about giving all Oregonians a chance to thrive and retire comfortably, we can’t afford to wait.

 

Oregon often sets the bar when it comes to innovation. And our “Save Today, Secure Tomorrow” legislation is becoming a national model for other states wishing to implement their own plans. We have a duty of care in ensuring a more promising and sustainable future for not only ourselves but our children.

 

I’ve spent my time in public service looking for ways to help everyone participate in a strong economy. Whether it’s finding innovative ways to create new jobs, helping entrepreneurial businesses with access to funds to grow, or encouraging our state to save for the future, it’s always been my priority to find fiscally responsible ways for Oregonians to take control of their own future and succeed.

 

Working to give all Oregonians access to a retirement plan is one of the best ways I know to secure a healthy, long run financial future for Oregon.

 

^[1] http://www.oregonlive.com/business/index.ssf/2015/11/lifes_surprises_setbacks_keep.html