Retirement Planning
9:04 am
Tue April 1, 2014

Bill Aims to Help Low-Income Workers Save For Retirement

Credit c-George/iStock / Thinkstock

Three quarters of Americans nearing retirement have saved less than $30,000 for their retirement years, according to data from the New School for Social Research. Decades of stagnant incomes, an inability to save, and disappearing pensions are part of the reason.

One third of Connecticut residents are baby boomers, and state legislators are proposing a program to help them do a better job preparing for retirement.

Julia Evans Starr of the Connecticut Commission On Aging.
Julia Evans Starr of the Connecticut Commission On Aging.
Credit Chion Wolf / WNPR

Julia Evans Starr, executive director of the Connecticut Commission On Aging, appeared on WNPR’s Where We Live. "We know that they used to rely on Social Security and retirement saving plans, and their own savings," she said. "We have seen definitely from the retirement saving plan a major decrease in the ability to access those. We're really hoping to help  low-income private sector workers -- folks who are making between $30,000 and $60,000."

Senate Bill 249 is meant to reach the 740,000 residents who are unable to access retirement funding through their employers. They would be able to set aside a portion of their salaries directly into a state trust fund.

With Connecticut spending millions of dollars for Medicaid services to residents over age 65, the hope is that the bill would also save the state money in the future.