Joining us today is Tom Sennett, member of the Connecticut Retirement Security Authority that was created to oversee the implementation of the Connecticut Retirement Security Program.
It takes a lot of work and planning to launch a retirement savings program the proper way. Tom can provide details of what the Authority has been doing in this process and updates on what the rollout will consist off in 2019.
Tom addresses the myths about the program, including that it’s a state-run program and the state can take or borrow from the savings accounts. In fact, the state is prohibited by state and federal law from taking or borrowing money from these accounts. These retirement accounts are held in a separate trust for the exclusive purpose of providing retirement income for employees.
There are 600,000 workers in Connecticut – 44% of the private workforce – who will benefit from this program now that they have an option to save automatically towards a secure financial future.
Americans are 15 times more likely to save for retirement when they can do so at work. In fact, fewer than 5% of people walk into a bank to open an IRA account.
The average Social Security benefits for a 65+ family is only about $19,000 a year, while older Connecticut families on average spend $24,000 a year on food, utilities and health care alone.
According to the Center for Retirement Research at Boston College, there is a $7 trillion savings deficit between what older Americans have saved and what they will need for retirement.
AARP is the nation’s largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age.