Here in America, we tend to have a bit of an idealized version of retirement. You FINALLY get to kick back all day every day, no need to work one of those pesky jobs or have a boss tell you what to do (spouses excluded, of course). You can watch Netflix, curl up with book after book, travel the world, or play shuffleboard to your heart’s content.
It all sounds great…but can you afford to do it?
Most Americans don’t save enough, and Washingtonians are no exception. A recent bill aims to improve that situation.
Here are Five Fast Facts on a new retirement savings bill:
- 💲 Saving Washingtonians - The program, called Washington Saves, is strongly supported by AARP and should benefit 1.2 million residents (about 43% of the private sector workforce) who don’t have access to an employer-sponsored retirement savings plan like a 401k. Almost ¾ of small businesses support the program.
- 👺 Improving The Odds - Decades of data show that automatic contributions from an employer make it 15 times more likely that workers will save for retirement. This avoids the temptation gremlins!
- 👋 Joining The Club - If this bill goes into law, Washington would become the 16th state to enact a program like this. It would kick off in 2027 and all workers would be automatically enrolled unless they opt out. It would also follow them if they change jobs. It’s like a stalker, but one you really, really want to keep finding you.
- 📈 Small Steps - Social Security provides an average of about $1600 per month (though don’t get too comfortable with that number, it won’t last). If workers save about $1000 per year from their 20s until they retire, they’ll be in tip top shape for the retirement they’re dreaming of no matter what happens to Social Security.
- 🍿 Primed And Ready - The bill has passed both the House and Senate, and is just waiting on Gov. Inslee’s signature to become law. Our popcorn is ready, now we’re just waiting and watching…
🔥Bottom line: This seems like a really good thing! It gives people a chance to take a little more control of their own futures, and it allows them to build their own future Paychecks in the form of retirement income. What’s not to like? It doesn’t hurt that more savings for more people means less reliance on state-funded services like Medicaid, saving all the rest of us money in the future, too!
What do you think about Washington Saves?
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