The Connecticut Retirement Security Authority Board continues to make steady progress towards the phased rollout of the new Connecticut Retirement Security Program. The bill was signed into law in 2016 and is on-track to begin operation in 2018.
The plan requires all Connecticut businesses of five or more employees with no pension or 401 K plan to allow employees to save for retirement through payroll deductions into private IRA accounts. It will be voluntary for employees, who will be automatically enrolled but have the ability to opt out. In Connecticut there are approximately 600,000 people who will be helped in saving for retirement with this new law.
Tim Ryan, the AARP Connecticut volunteer who is leading the organization’s effort on the education and implementation of the Connecticut Retirement Security Program, said, “It’s tremendous to see how close Connecticut is to implementing the plan that provides the 600,000 workers without a workplace retirement savings plan an opportunity to build a secure financial future for their families. We encourage everyone who is interested in volunteering or learning more about this plan that will benefit our state at no cost to taxpayers to reach out to us.”
For more information, please visit AARP Connecticut’s retirement security web page.
According the AARP Public Policy Institute finds that between 2018-2032 Connecticut could save over $90 million if lower income retires save enough to increase their retirement income by only $1000 a year.
There is a $7 trillion retirement savings deficit among older Americans in the United States, according to data from The Center for Retirement Research at Boston College. Further, AARP Public Policy Institute studies show that people are 15 times more likely to save for retirement if they can do so through a payroll deduction program at work.