AARP PA officials recently presented State Treasurer Joe Torsella with the AARP Super Saver award for his work to help Pennsylvanians better save for retirement at meeting of the York County Economic Alliance Leadership Luncheon Series.
The Super Saver award recognizes Torsella’s leadership in assembling a task force of legislators, business leaders and government officials that is studying how to improve retirement savings for state residents. AARP state and national experts are part of the Treasurer’s task force that is charged with helping Pennsylvanians take control of their financial future.
The numbers show Pennsylvania is facing a retirement savings crisis. Currently:
-More than 2 million private sector Pennsylvania workers do not have access to a retirement savings plan at their place of employment.
-Nearly half of workers age fifty and older have less than $25,000 in savings.
-Many people have no retirement savings at all and are expecting to live on Social Security alone.
One potential solution is providing businesses with access to a statewide payroll deduction savings plan will help workers build
their own economic security in retirement. Right now, only 1 in 20 workers will open a retirement account on their own, but they are 15 times more likely to contribute if it’s offered where they work.
Enhancing retirement savings opportunities for more Pennsylvanians can’t happen soon enough. When workers set aside money for retirement they are less likely to rely on public assistance programs later in life, saving significant taxpayer dollars for programs like Medicaid, Supplemental Security Income, the Supplemental Nutrition Assistance Program, and housing assistance.
Even a modest amount of savings could make a big difference. An AARP study shows if lower-income retirees were able to increase their retirement incomes by as little as $1,000 a year, Pennsylvania could save $330 million on public assistance programs between 2018 and 2032.