New York on Thursday became the latest state to expand retirement savings options for workers. Gov. Kathy Hochul signed an AARP-supported bill requiring a business with 10 or more workers to enroll those employees in a state-backed savings plan if it doesn’t already offer a private retirement plan.
Workers can opt out of the state-supported “work and save” plan, but they’ll be automatically enrolled otherwise. AARP is pushing other states to adopt such plans, with research showing that people are significantly more likely to save for retirement if their employer provides a plan. Fourteen states now offer work and save plans. AARP New York estimates more than 3.5 million New Yorkers between ages 18 and 64 don’t have a retirement savings plan available through work.
The bill was approved by the state Senate in June but had remained in limbo following the resignation of former Gov. Andrew Cuomo.
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