Could You Retire From Your Job in Debt?

Doing finances

Think about retiring from your job with no savings — not even a little bit — just debt. Unfortunately this is the case for one in five Utahans, according to a new study released recently by Notalys LLC. This news is troubling, to say the least. To make matters worse, with 45 percent of working-age households having nothing — zero dollars — saved toward retirement, what’s playing out in Utah could have significance nationwide.

That’s why Utah and other states around the country are taking action to remedy this situation by establishing “ Work and Save” plans—a commonsense solution to help individuals save toward a secure retirement. The plans are a win all around, benefiting employees, small businesses and states.  The plans are:

  • Portable from job to job, easy to use, and give employees choice on how and how much they save.
  • Give small businesses a competitive edge.
  • Not a pension and can’t add on to the states liability. Plus, with individuals shoring up their private retirement savings, they are less likely to be dependent on government programs. 

>> Stay current on where we stand — AARP Advocacy Newsletter

Still, in my mind, the biggest bonus of Work and Save plans is: When people have a way to save for retirement at work, the rate of their saving increases exponentially — and by that, I mean 15 times.

Right now, state legislatures are discussing options to help their residents retire with confidence. Here are a few highlights:

  • Kentucky: Legislation is pending to create Kentucky Retirement Accounts (KYRA), the Kentucky version of Work and Save that would give 800,000 Kentuckians access to workplace savings.
  • Utah: The state is considering a Work and Save study to address financial insecurity in retirement. The Notalys study I mentioned earlier found that increasing the savings rate could save taxpayers $200 million over 15 years — a measure supported by 77 percent of Utahans age 25-64.
  • Oregon: Last year, Oregon created a legislative task force to study Work and Save. This year, the legislature is considering putting the plan into place, and hearings are scheduled in the coming weeks.
  • Maryland: This week, the state will release a report on retirement savings and begin hearing testimony on Secure Choice, the Maryland version of Work and Save.
  • Virginia: This month, a bipartisan bill to study the idea of a Work and Save plan passed the Virginia House unanimously.
  • Washington and Indiana are looking into innovative ways to help their residents save for retirement through a portal that would connect small businesses with private-sector retirement plans vetted for things like fee structure and disclosure.

Follow me on Twitter  @RoamTheDomes for more news on retirement security. And to stay up to date on our AARP advocacy in the states, sign up for the  AARP Advocates e-newsletter or visit your  state Web page.


Elaine Ryan is the vice president of State Advocacy and Strategy Integration (SASI) for AARP. She leads a team of dedicated legislative staff members who work with AARP state offices to advance advocacy with governors and state legislators, helping people 50-plus attain and maintain their health and financial security.

Follow Elaine on Twitter: @RoamTheDomes.


Also of Interest

See the  AARP home page for deals, savings tips, trivia and more.

Search AARP Blogs

Related Posts
December 11, 2018 10:07 AM
In an election year filled with partisanship and political fights, it’s no surprise that many Americans feel that their voices aren’t being heard or that the issues that affect their lives aren’t being addressed. But, many outstanding elected officials work hard every day to make a positive difference for their constituents.  That’s why AARP recognizes state legislators, governors, and other elected officials – from both sides of the aisle – who have stepped up and worked together to write, support, and advance common-sense policies that help older Americans remain in their homes and communities and retire with confidence. AARP is proud to announce our fifth annual bipartisan class of Capitol Caregivers, who fought this year to increase support for family caregivers and their loved ones, along with our fourth annual bipartisan class of Super Savers, who championed policies that enhance retirement security.
December 05, 2018 01:06 PM
Caroline is a mother of two children and a preschool teacher who unexpectedly became a family caregiver for her father after he suffered a major stroke. Her father, Tom, now deceased, lost the use of his right side and his ability to speak. Multiple surgeries and rehabilitation treatments later, he was able to live at home with the help of nurses. But it was up to Caroline to provide daily care, such as overseeing appointments and handling certain nursing responsibilities, like managing his medications. “I became the person my father could rely on more than anyone in the world,” Caroline said. “I became his safe place and his best friend.” In communities across the country, family caregivers like Caroline are caring for older parents, spouses and other loved ones, helping them to remain at home – where they want to be. Their tasks are done out of love and commitment, but are not easy. That’s why AARP is fighting for family caregivers and their loved ones in every state. In 2018, AARP advanced new policies to provide more help at home, flexibility at work, training, relief and more, which will benefit over 30 million family caregivers. Here are a couple highlights:
November 27, 2018 08:55 AM
A few months ago, I wrote a blog about the vital role that transportation options play in what we at AARP call “livable communities” – great places to live for people of all ages. Being able to get around is critical to earn a living, raise a family, contribute and stay connected to your community and enjoy life. And, having alternatives to getting behind the wheel of your own car is particularly important for older adults who want to stay in their homes and communities as they age.