Baby Boomers across Wisconsin and the country are learning the hard way what many retired folks already know all too well…
…that Social Security alone is simply not enough to provide them with financial security in retirement.
In fact, the average Social Security payment in Wisconsin is just over $1,100 per month for women and $1,500 per month for men. A shockingly large number of Wisconsinites rely on these payments for a majority of their family income.
That’s one of the reasons we are putting all of AARP’s weight behind a new bill introduced in the Senate this week (SB 611), authored by Sen. Hansen and Rep. Genrich, calling for a feasibility study to determine the cost and benefits of a plan that would give Wisconsinites the opportunity to participate in a private pension if one is not offered by their employers.
Consider this - Three quarters of Americans nearing retirement age have saved less than $30,000 for retirement and an estimated 1.5 million workers in Wisconsin have no access to a retirement plan.
That’s why a pension is so important. It provides some basic level assurance that if you put a little money aside now, you won’t have to live so frugally in retirement.
When combined with Social Security benefits, personal savings and various other retirement savings plans, a basic pension can help Wisconsin residents be much better prepared to retire and enjoy life on their own terms.
The feasibility study will look at a basic pension plan that is similar to the Wisconsin Retirement System that’s available to state workers.
The goal will be to provide a low-cost, defined benefit option to employers and their workers in the private sector who currently do not have access to their own plan, or whose plan is insufficient to help with their retirement security.
The idea is to create a strong fund that would provide incentive and opportunity for workers and their employers to save for their retirement without having to become money managers or expert investors.
We expect this bill will to be introduced in the Assembly sometime next week .
Please call your state legislators today at 1-800-844-2847 and urge them to support this bill that gives working Wisconsinites access to a pension.