State Lawmakers Pass AARP-Backed Hawai’i Saves Bill

Saving for retirement is about to get easier in Hawai`i. State lawmakers this week passed a bill that will set up a state-facilitated retirement savings program, potentially benefiting the state’s 215,000 private-sector workers who don’t have a workplace savings option like a 401(k) plan through their jobs. 
The bill, which now awaits the governor’s signature, will require certain companies and businesses to enroll in a state-facilitated savings program if they don’t already offer a 401(k) or similar retirement savings option. Employees will need to opt-in to start saving through the program, and the first 50,000 workers that opt-in will each receive a matching $500 contribution. 

For several years, AARP Hawai`i has pushed to get the bill over the finish line, helping residents contact their elected officials to voice support for the Work and Save program. Research shows people are 15 times more likely to save for retirement when they can do so at work. Fourteen states, including Oregon and California, have enacted similar programs. Other states, including Pennsylvania, are considering Work and Save legislation. 

Read more about states’ retirement policies at our State Retirement Resource Center.

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