AARP is backing legislation that could help more Utahns build retirement savings through payroll deductions. More than half of Utah workers lack access to an employer-sponsored savings plan.
With the decline of traditional pensions and limited access to 401(k) plans, many people are not building adequate savings for retirement. The Employee Benefit Research Institute found workers earning between $30,000 and $50,000 were 15 times more likely to save for retirement if they had a plan at work than those without such a plan.
Under a proposal called Work and Save, employers would create a payroll deduction, similar to that used for withholding taxes. Employers would not have to contribute to employees’ accounts, but would deduct workers’ contributions from their paychecks and send the money to their IRAs.
AARP Utah urges members to contact their legislators at le.utah.gov to advocate for passage of the bill.