69% of companies that don’t offer a plan say cost is a concern; “Secure Choice” would afford them a state-facilitated option
Nearly three quarters of New York small businesses that don’t offer their employees a retirement savings plan would likely do so if a state-facilitated option existed, according to a new survey commissioned by AARP.
More than half of New York’s private sector workforce – over 3.5 million New Yorkers – lack access to a retirement savings plan such as a pension or 401(k) plan through their employer – including 67% of Hispanics. Yet workers are 15 times more likely to save if they can do so through work.
Governor Andrew Cuomo has identified New Yorkers’ lack of retirement savings as part of an emerging national crisis. AARP is urging the Governor to include in his 2018-19 state budget proposal next month “Secure Choice,” a state-facilitated plan that would be voluntary for employers and would allow participating companies to offer their workers a Roth IRA through payroll deduction. Participation would also be optional for employees.