En español | Nearly 1 million Maryland workers — 43 percent of the state’s private sector workforce between ages 18 and 64 — don’t have a traditional pension, 401(k) or similar savings plan through their jobs, according to a new AARP survey. Many of these workers could benefit from MarylandSaves, a new state-facilitated and privately managed savings program that will give workers more options as they plan for retirement.
“Having access to a retirement plan at work is critical for building financial security later in life,” Hank Greenberg, state director for AARP Maryland, said in a statement on Thursday. “And we know people are much more likely to save for retirement if they can do so automatically through their paycheck.”
MarylandSaves launched this week and will require companies that are at least two years old and have at least one W-2 employee to enroll their employees in the program unless they offer their own 401(k) or similar employer plan. Workers can opt out but will otherwise be automatically enrolled.
We’ve been working with lawmakers across the country to improve retirement savings options for workers, with research showing people are 15 times more likely to save for retirement when they can do so at work. Maryland is one of 16 states to enact similar retirement savings legislation, with lawmakers in Delaware and Hawai’i passing bills earlier this year.
Read about MarylandSaves, and learn more about saving for retirement.
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