AARP Eye Center
AARP-Supported Retirement Savings Bill Enacted in Puerto Rico
By Natalie Missakian, March 16, 2023 08:53 AM
En español | We’re thrilled that Gov. Pedro R. Pierluisi has signed legislation that moves Puerto Rico a step closer to making it easier for private-sector workers to save for retirement.
The new law sets up a working group to design a publicly facilitated retirement savings option, similar to programs we’ve championed in states across the country. It will also establish financial literacy training for public and private employees.
An AARP poll of registered voters in Puerto Rico last year found nearly three-quarters were worried about having enough money to retire, and about nine in 10 supported a public-private workplace savings option. AARP research shows people are 15 times more likely to save for retirement when they can do so at work.
“This legislation represents a crucial step to tackle the crisis of financial insecurity that the island is experiencing, through financial training and innovative savings tools for all workers,” AARP Puerto Rico State Director José R. Acarón said in a statement. AARP Puerto Rico will be part of the retirement savings plan working group.
Puerto Rico plans to model its program after other state-facilitated retirement programs, also known as Work and Save, that we’ve supported. Though they vary by state, the programs typically require employers to offer an IRA-type savings program, unless they provide a 401(k) or similar plan. Workers contribute through voluntary automatic payroll deductions and can keep the account if they switch jobs.
Lawmakers in 16 states have enacted such legislation, most recently in Delaware and Hawaii, and bills are being considered in other states, including Pennsylvania.
Read more on our state advocacy work, and learn about planning for retirement.
Start each day with The Daily newsletter for the latest in health, money and jobs — and updates on how we're fighting for you.