More than 40% of Michigan’s private-sector workforce doesn’t have access to a retirement-savings plan at work, according to a new survey from the AARP, and the organization wants to change that. AARP Associate State Director of Government Melissa Seifert tells us they’re calling on the Michigan Legislature to come up with a plan for small businesses to offer retirement savings to workers.
“We do want to make sure that these plans are mobile for the employees so if they may not stay at that small business, they can take it to their next small business, and we also want to make sure that these plans are easy for the small business to incorporate into their payroll deductions,” Siefert said.
Seifert says the survey found 79% small businesses agree being able to offer a portable retirement savings program helps them both attract and retain quality employees, while nearly 62% are concerned their employees won’t be able to retire due to a lack of a plan. She says it would serve the state well to come up with a portable retirement savings plan model.
“One of the things that we found through this survey is the state of Michigan could save $81.7 million by helping people save for their own retirement and not go on public assistance later on in life.”
Seifert says other states have done this, including Illinois, Delaware, and California. The AARP is going to be talking with lawmakers throughout the summer.
