1. Work and Save

2. Households at Risk of Financially Insecure Retirement on the Rise
52 percent of households are at risk of not having enough to maintain their living standards in retirement, according to the Center on Retirement Research.
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
2013
Source: Center for Retirement Research, National Retirement Risk Index

3. Average Household Has $3k Saved
The average monthly Social Security benefit in the United States is $1,335, hardly enough for a person to be self-sufficient in retirement. At this rate, one out of two middle class retirees will be unable to afford their basic needs in retirement— like medicine, utilities, and rent. This will cost taxpayers down the line in social services.

4. Savings Gap Over Time by Ethnicity
Source: Urban Institute Calculations from Survey of Consumer Finances
*Source did not provide values on Asian Americans and Pacific Islanders

5. $1,335 per month Average Social Security Benefit
The average monthly Social Security benefit in the United States is $1,335, hardly enough for a person to be self-sufficient in retirement. At this rate, one out of two middle class retirees will be unable to afford their basic needs in retirement— like medicine, utilities, and rent. This will cost taxpayers down the line in social services.
Source: Official Social Security Website, Fact Sheet

6. 55 Million Americans Lack Access
ERISA introduced
55 Million Americans Lack Access
Access dropped steeply in the aftermath of the 2001 recession and then again after 2008 financial collapse. In 2013, access finally started to increase, after more than a decade of decline, to nearly 55%. However, this still means that over 45 percent worked for an employer that did not sponsor a retirement plan in Workers who lack access to an employer-sponsored retirement plan tend to work for smaller firms, and to be low- to middle wage employees -NIRS
Source: NIRS, “The Continuing Retirement Savings Crisis”

7. The Power of Auto-Enrollment
Participation Rates
Workers are 15x more likely to save if they are covered by an employer and 18x more likely if they are automatically enrolled.
Data compiled by AARP’s Public Policy Institute from unpublished estimates from the Employee Benefit Research Institute of the 2004 Survey of income and Program Participation Wave 7 Topical Module (2006 data). See also Brookings' Retirement Security Project and WhiteHouse.gov. Auto-Enrollment Data provided by Vanguard.

8. Percent of Workers Whose Employer Does Not Offer a Retirement Plan
This new analysis gauges the relative performance of the fifty states and the District of Columbia in three key areas: anticipated retirement income; major retirement costs like housing and healthcare; and labor market conditions for older workers.
The study is designed to serve as a tool for policymakers to help identify potential areas of focus for state-based policy interventions to improve Americans’ retirement prospects.
30 – 40%
40 – 50%
50 – 60%
+ 60%
Source: AARP’s Public Policy Institute

9. Access to Retirement Plans in Communities of Color, Nationwide Private Sector
Source: NIRS

10. Budget Consequences
According to a recent Utah study, the total cost to taxpayers for new retirees will top $3.7 billion over the next 15 years. This constitutes potential savings for taxpayers if we act now.
Additional findings:
18% of retirees in the next 15 years will retire with more debt than savings.
A 10% increase in net worth of the 1/3 least prepared for retirement will save taxpayers $194 million through 2030.
Source: Notalyis

11. 529’s: A Precedent for State ActionJo
Contributions grew by $25 million in 2015
Source: College Savings Plan Network

12. Solutions
5 essential ingredients that facilitate adequate retirement savings rates:
availability
automatic enrollment
ease of investment
automatic escalation
lifetime income streams
Action steps:
Make retirement plans with payroll deduction available to all workers. Currently, 55 million US employees have no way to save for retirement at work.
Increase participation and savings rates by changing the choice architecture of retirement plans, utilizing the findings of behavioral economics

13. Payroll Deduction Valued Across All Income Levels

14. Effect of Auto Enrollment on Participation
Source: How America Saves: 2013 (Valley Forge, PA: Vanguard, 2013)

15. A National Movement 2013 Work and Save
2012: Massachusetts passed plan for non-profits
California passed feasibility study
2013: Oregon passed study of retirement security

16. A National Movement: 25+ StatesJo
2016 Work and Save
Since then, six states have signed legislation into law. 23 states are working on legislation and various states are working on research and feasibility studies.
2014: Minnesota and Connecticut each passed a feasibility study, appropriating $400k for the work
Over a dozen states working on this concept nationwide .
2015: Illinois, Oregon and Washington Governors sign new laws
Utah Senate and Virginia pass studies unanimously.
2016: New Jersey (D), Maryland (R) and Connecticut (D) Governors
sign new laws
Utah and California passed bill in one house
25+ states addressing financial security

17. National Context 2012: Massachusetts passed plan for non-profits
California passed feasibility study
2013: Oregon passed study of retirement security
2014: Minnesota and Connecticut each passed a feasibility study, appropriating $400k for the work
Over a dozen states working on this concept nationwide
2015: Illinois, Oregon and Washington Governors sign new laws
Utah Senate and Virginia pass studies unanimously
2016: New Jersey (R), Maryland (R), Connecticut (D) and California (D) Governors sign new laws
Utah and passed bill in one house

18. Various Models Discussed in States
Studying
Retirement
Insecurity
Feasibility Study
Marketplace
Voluntary IRA
Auto IRA
ERISA Plans and/or
DB features
Multi-tier Approach
Utah
Virginia
Vermont
New
Hampshire
Nebraska
NYC
Philadelphia
Minnesota
California
Connecticut
Washington*
New Jersey*
West Virginia
North Dakota
Indiana
California*
Illinois*
Oregon*
Connecticut*
Maryland*
New Jersey
Kentucky
Ohio
Colorado
New York
Arizona
Rhode Island
Wisconsin
NYC Comptroller
Massachusetts**
Legislation being implemented
** Massachusetts implementing a plan for small non profits
Note- double listings are not mistakes, they reflect multiple bills under consideration
Updated November 2016

19. Auto IRA vs. Marketplace
Feature
Auto IRA
Marketplace Model
Automatic IRA x
Marketplace
Can include
Requires access to payroll deduction for employees and provides access to automatic enrollment
Businesses are only required to provide information to employees and run payroll deduction
Provides plug-and-play plan option for small business owners that employers don’t have to manage
Optional for employees
Employee can chose which plan they want to offer
ERISA plan
Some, including SIMPLE
Fee cap
Public Private-Partnership

20. Small Businesses Support Work and Save
Small business owners overwhelmingly agree that retirement benefits help recruit good employees
Data from NCPERS

21. 2015 New Jersey Survey or Registered Voters Agree by Political Party
Voters Support Work and Save Across Party Lines
2015 New Jersey Survey or Registered Voters
Across party lines, eight in ten agree that elected officials should support a retirement saving plan and many would think positively of small businesses that offer a plan
Agree by Political Party
Democrat
85%
Republican
79%
Independent/Other
76%
The AARP 2015 New Jersey Work and Save Survey was conducted as a telephone survey among registered voters age in New Jersey. The survey collected the opinions of New Jersey residents on retirement security, savings options, and proposed state work and save legislation. The survey was approximately 10 minutes in length. The interviews were conducted in English by Precision Opinion from March 19th to April 4th, The sample utilized a voter list. The margin of sampling error for the sample of 1,000 for New Jersey is +/-3.2%.
AARP Polling

22. National Media Attention
State savings plans have continued to garner mass media attention and are quickly becoming a trending issue among the public at large.

23. Questions? Sarah Mysiewicz Gill Senior Legislative Representative
State Financial Security & Consumer Affairs
AARP
@pensionimposble
Additional Resources:
AARP’s Public Policy Institute State Retirement Savings Resource Center