WASHINGTON STATE

Washington State House Democrats

HOUSE DEMOCRATS

A nickel here, a dollar there; it all adds up

Besides apple pie and cowboys, if there is one thing America is well-known for, it’s “The American Dream.” The idea that no matter where you start out, if you work hard, you can succeed. It’s what draws immigrants from all over the world.

Photo Credit: Freedigitalphotos.net; ddpavumba

But for too many Americans, that dream is out of reach. In spite of working their entire lives, many can’t save enough to ever retire.

  • 45 percent of households in Washington have no assets in retirement accounts.
  • Almost half a million workers near retirement age in Washington state have saved less than $25,000 for retirement.

Are these people lazy? No. Americans are honorable, hard-working people. But the reality is that most people don’t save for retirement if they can’t do so through their work. And the vast majority of small businesses do not offer retirement savings plans because they are too expensive and/or time consuming to manage.

Lawmakers here in Washington see this crisis and are working to find a solution. Last session, a bipartisan group of legislators sponsored the STaRT (Save Toward a Retirement Today) bill. STaRT would have set-up a state operated retirement system that private employees would have the opportunity to contribute to.

With STaRT, cost to business would be minimal; and all workers would be able contribute – at whatever amount worked for them, $50 a month or $500 a month. The system would be great for workers who already have jobs with 401(k)s too, because chances are, they will switch jobs at least a half-dozen times. Switching pension plans isn’t simple or easy. With STaRT, the account would follow employees wherever they go.

Last week was National Save for Retirement Week. It’s a good time to think about saving and planning for your retirement future. Unfortunately, this year the STaRT bill did not pass. But rest assured, lawmakers here in Washington will continue the fight to make sure everyone has an equal opportunity to save for retirement.

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