Washington, D.C. – California’s new law, the Secure Choice Retirement Savings Act, highlights an issue prevalent throughout our country that prevents millions of Americans from saving adequately for retirement.
“California has identified a major problem that prevents millions of Americans from saving for retirement: they don’t have access to a payroll deduction plan through the workplace,” Shai Akabas, director of fiscal policy at the Bipartisan Policy Center, said.
The BPC’s Commission on Retirement Security and Personal Savings found that 34 percent of private-sector workers in the United States lack access to workplace retirement savings plans.
“While California’s approach will certainly provide access to many people in that state who don’t yet have retirement savings plans, it does nothing for workers without access in other states,” Akabas said.
“Even if other states continue to take action on their own, the results will be a patchwork of requirements that causes confusion and hassle for both employers and employees,” Akabas said. “That is why we need a solution at the national level.”
Shai Akabas is available for comment.