Let's Make it Easier to Save for Retirement

Advocate to Make it Easier to Save for Retirement

Please urge the Michigan Legislature to pass House Bill 5461 to help more workers take control of their financial future.

According to a 2021 AARP survey, 60% of Michigan registered voters aged 25-64 feel anxious about having enough money to live comfortably through their retirement years, and half say they are behind schedule for planning and saving for retirement. This is also an important issue for taxpayers overall, because when individuals don’t have enough retirement savings to live on, they are more likely to rely on public assistance programs. An analysis by the AARP Public Policy Institute estimates the State of Michigan could save $81.7 million over 15 years if lower-income retirees saved enough to increase their retirement income by $1,000 per year. Additionally, House Bill 5461 would help Michigan small businesses attract and retain quality employees and stay competitive.

Currently 42% of Michigan's private sector employees aged 18-64 work for businesses that do not offer a retirement plan. In raw numbers, that means about 813,000 small-business employees, and about 751,000 workers at businesses with 100 or more workers, don't have access to a retirement plan at work. And research shows that saving at work is critical. Fewer than 10% of households regularly contribute to an Individual Retirement Plan outside of their jobs. However, when offered the opportunity to save for their retirement through a payroll deduction plan at work, 7 out of 10 people choose to participate.

For all these reasons, AARP supports House Bill 5461, which was introduced in the Michigan Legislature by Representative Mike McFall. House Bill 5461 would create the Michigan Secure Retirement Savings Program to give private sector workers whose employers don't otherwise offer a retirement plan a simple way to save for their retirement through an optional payroll deduction.

Please urge your state legislators to support House Bill 5461 to give more Michigan workers a pathway to grow their retirement savings and take control of their financial future.

You can use the form below to email them right now.

RECIPIENTS:
Your State Senator and State Representative

Form Label Field

Your Message

Subject Support HB 5461 to make it easier to save for retirement

Dear Legislator,

Message

I am writing as your constituent to urge you to support House Bill 5461, which would give private sector workers whose employers don’t otherwise offer a retirement plan a simple way to save for their retirement through an optional payroll deduction.

According to an AARP survey, 60% of Michigan registered voters aged 25-64 feel anxious about having enough money to live comfortably through their retirement years, and half say they are behind schedule in saving for retirement. Inadequate retirement saving also impacts the state budget, because when individuals don’t have enough retirement savings to live on, they are more likely to rely on public assistance programs. An analysis by the AARP Public Policy Institute estimates the State of Michigan could save $81.7 million over 15 years if lower-income retirees saved enough to increase their retirement income by $1,000 per year. Additionally, House Bill 5461 would help Michigan small businesses attract and retain quality employees and stay competitive.

Currently 42% of Michigan workers aged 18-64 in the private sector work for businesses that do not offer a retirement plan. This is a critical point because research shows that having the ability to save through a payroll deduction is a predictor of whether someone is likely to save for retirement at all. Fewer than 10% of households regularly contribute to an Individual Retirement Plan outside of their jobs.

Making it easier for Michiganders to save for retirement is good for Michiganders, businesses and the state budget. I urge you to support House Bill 5461 to give more Michigan workers a pathway to grow their retirement savings and take control of their financial future.

Sincerely,

[First Name] [Last Name]
[Your Address]

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