RICHMOND _ On Friday, February 9, 2018 the Virginia House of Delegates passed legislation H.J. 103 that could help more Virginians save for retirement, this bill will now go to the Senate. An AARP survey reveals that many voters in the Commonwealth are extremely worried about their ability to build nest eggs and believe lawmakers should support the creation of a Virginia Public-Private Retirement Savings Plan.
An AARP telephone survey conducted in January of registered voters in Virginia ages 18-64 shows that many Virginia registered voters age 18-64 who are in the workforce do not feel financially prepared for retirement.
legislation H.J. 103, passed by the House of Delegates, would commission a feasibility study to be conducted by Christopher Newport University on the development of a plan that would provide more Virginia workers with retirement savings options through their employers. This legislation will now go to the State Senate to be considered. AARP Virginia has secured two co-patrons to shepherd it through that chamber, Senator Frank Ruff (R – Mecklenburg) and Senator “Monty” Mason (D – Williamsburg).
Nearly three in five respondents to the AARP Virginia survey feel anxious about having enough money for retirement and eighty-six percent wish they had more money saved for retirement. More than half (55%) feel they are behind schedule for planning and saving for retirement.
Nearly all (86%) survey respondents believe it is very important to be able to save for retirement while working. But while 76% of people with workplace savings options make regular contributions to those plans, nearly one-in-four (24%) of all voters in the survey do not have access such an option but overwhelmingly say they would.
“Being able to save for retirement at work directly from your paycheck can make all the difference in the world for someone who wants to build a nest egg,” said AARP Virginia State Director Jim Dau.
Most (80%) of Virginia registered voters are concerned about cost-of-living increases reducing their standard of living and half are not confident they will have enough money to cover health care expenses in their retirement years.
Most agree that Virginia lawmakers should do more to make it easier for Virginia small business owners to offer a way to save for retirement. Additionally, three in four support an online marketplace retirement savings plan that would help Virginia residents save for retirement through a private-public partnership.
Virginia registered voters understand that a sound workplace savings plans should include key features such as portability, smaller businesses, and voluntary participation.
“Ultimately, each individual can decide whether or not they want to take advantage of important savings options,” added Dau. “What’s important here is making sure they have the opportunity to do so.”
In addition to helping individuals save, better workplace savings options would also generate significant savings in government spending. A report released by AARP Virginia in December 2016, also conducted by Christopher Newport University, found that a “10% increase in net worth among retirees could save taxpayers as much as $326 million through 2030 in reduced costs of government funded benefits to retirees in Virginia without sufficient resources.”
AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With nearly 38 million members and offices in every state, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP works to strengthen communities and advocate for what matters most to families with a focus on health security, financial stability and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation’s largest circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org or follow @AARP and @AARPadvocates on social media