Retirement Savings Reform: AARP Endorses Legislation for Automatic Payroll Deduction Option
Several studies show that Americans do not have enough money saved for retirement. Although 77% of Americans have some sort of retirement plan, people between the ages of 55 and 64 only have a median savings of roughly $107,000.
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AARP is hoping this may change, at least in Pennsylvania, with new legislation that would give workers in the state access to a payroll deduction retirement savings option. The Keystone Saves legislation, sponsored by state Representatives Tracy Pennycuick and Michael J. Driscoll, could help employees by enabling automatic deductions for retirement savings. AARP announced its endorsement of the legislation in a press release distributed by PR Newswire on Dec. 13, 2021.
AARP studies show that Americans are 15 times more likely to save for retirement if there is a program in place at their job. They are 20 times more likely to save if paycheck deductions are automatic. In the press release, AARP Pennsylvania noted that more than 2.1 million Pennsylvania residents do not have an employer-sponsored retirement savings plan.
“AARP urges the General Assembly to consider House Bill 2156 as a vital piece of every Pennsylvanians’ long-term financial health and retirement needs,” AARP Pennsylvania State President Joanne Grossi said in the press release. “Keystone Saves will improve the lives of many Pennsylvania workers and small business owners, and we are committed to working with you to make these critical improvements in our state.
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