When the Virginia General Assembly comes to town Jan. 11 for its 2017 session, AARP will be advocating to ensure that more Virginians have access to a retirement account at work.
Delegate Luke Torian and Senator Frank Ruff are sponsoring legislation to create a retirement program for workers who do not have access to an employer-sponsored plan. Similar to 401(k) plans, workers would have the option of saving for retirement through payroll deduction.
Why Virginians Need Work and Save
- Social Security was never meant to be the only source of retirement income: Social Security provides a floor for retirement income,but must be supplemented by personal savings for retirees to have financial.
- A disproportionate number of workers have no way to save at work: 44 percent of Virginians have no access to an employer-sponsored retirement plan. We need a common sense solution to the retirement deficit problem that allows workers to save and prepare for their retirement years.
- Workers save substantially more when given the chance: When employees are given the opportunity to save via payroll deduction they take advantage of it. In fact, just having access to a workplace retirement plan boosts employee savings rates by 1,300 percent.
- Work and Save plans will reduce retiree dependence on Virginia government programs: Increasing personal savings will help Virginians be self-sufficient in retirement. Work and Save plans are intended to be self-sustaining and participant-funded, so there will be no ongoing cost for the state.
- Small businesses want to give their employees retirement savings account plans: Nearly 80 percent of small businesses do not have retirement savings plans for their employees. Yet most entrepreneurs agree it is a great way to attract and retain high quality employees.
- Workers aren’t saving enough for retirement: According to the National Institute on Retirement Security, the typical working-age American household has only $3,000 in retirement assets and retirement households only have $12,000.
Call or write your state legislator and urge them to vote YES on legislation to increase access to payroll deduction retirement accounts. Find your legislator here.