How Keystone Saves Addresses Pennsylvania's Retirement Crisis

AARP knows that access to an employer-based retirement plan is critical for building financial security later in life. That is why we are fighting for over two million Pennsylvania employees who work for a private sector employer that does not offer a traditional pension or a retirement savings plan to easily save for retirement. 

To help Pennsylvania workers grow their retirement savings so they can live independently as they age. Over 41 percent of Pennsylvania private sector workers aged 18 to 64 in 2020 were employed by businesses without a retirement plan.  This percentage includes workers at all earnings levels, education, and backgrounds.  All of them would benefit from using payroll deductions to save for retirement. 

A Pennsylvania Work and Save program -- Keystone Saves -- will allow these workers to save from their regular paycheck and help them grow their savings to take control of their future.

Why Keystone Saves?

Research shows that employees are 15 times more likely to save for retirement if they have a savings account at work. And for states like Pennsylvania, which faces the fiscal strain of an increasingly older population, making it easier to set aside even modest savings during their working years will pay dividends for individuals, businesses, and state taxpayers in the long run.

While Social Security is a critical piece of the retirement puzzle, it alone is not enough. The average Social Security benefit for a 65+ Pennsylvania family is only about $21,000 annually, even though these families spend almost $25,000 annually on food, utilities, and health care alone.

How would Keystone Saves work?

The Pennsylvania Keystone Saves Program would expand the ability of private sector workers to save when they do not have an employer-provided retirement plan.  At no cost to employers, Keystone Saves creates an individual retirement account (IRA) program that automatically enrolls workers, who can opt-out so that no Pennsylvanian would be required to participate.  

When will Keystone Saves begin?

HB 577 was recently introduced in the Pennsylvania House of Representatives to create the Keystone Saves Program.

It was voted out of the House Commerce Committee on May 3rd and advanced to the full House. Stay tuned for more!

Want to learn more about Keystone Saves?

From small business owners to nonprofit organizations to editorial boards, support for Keystone Saves has shown up in news outlets across the Commonwealth.

Lancaster Online: Keystone Saves is a good solution for small businesses, employees

Pew Charitable Trusts: Pennsylvania’s Keystone Saves Program Would Reduce Taxpayer Burden

Pittsburgh Post-Gazette: Keystone Saves retirement plan should be back on the table in Harrisburg