It is a distressing fact that on average, working households in Maine have just $2,500 in retirement savings. This is due in part because many Maine workers have no way to save for retirement through their employer. This legislative session, a simple solution is being proposed and AARP Maine strongly supports it. LD 1622, sponsored by Sen. Eloise Vitelli (D-Sagadahoc County), would offer thousands of Maine workers an easy way to save for retirement through their workplace.
Under this proposal, employees could save for retirement through a payroll deduction in the amount they choose. Employees would be automatically enrolled in the program but could choose to opt out if they wanted to. The money they save would be theirs to take with them from job to job, to rely on in later years for a more secure retirement. All the employer would have to do is set up the deduction.
This program could be a game-changer for many Maine workers. An AARP Maine survey that was just released found that when it comes to planning and saving for retirement, 40 percent of Mainers 45 and older say they are behind schedule. Further studies show that Mainers are 15 times more likely to save when they can do so through their job. Over time, even a small contribution can make a big difference.
If you are one of the thousands of Mainers concerned about saving for retirement, please urge your legislators to support LD 1622. Maine lawmakers have the opportunity to give Maine workers an easy way to increase their savings and take control of their own future.
AARP Maine Volunteer State President