Colorado state Senators Brittany Pettersen and Kerry Donovan introduced their bill to tackle Colorado’s growing retirement savings crisis.
SB20-200 would make it easier for every hardworking Coloradan to automatically invest in their future and take their retirement savings with them when they change jobs, or if they work multiple jobs.
“We are proud to announce that we will be introducing a bill this week that enables the Colorado Secure Savings board to move forward with implementing a Colorado facilitated automatic retirement savings plan,” said Sen. Kerry Donovan. “The plan will make sure that Coloradans have access to a retirement savings plan at work where they can save automatically each month – a key to boosting individual retirement savings over time.”
Currently, nearly half of Coloradans in the private sector aged 25 to 64 don’t have retirement plans at work.
Even among those families who are nearing retirement, four out of 10 have no retirement assets. This lack of savings puts millions of people and our economy at risk. And with some 10,000 baby boomers turning 65, every day in the U.S., a generation is reaching retirement in worse financial shape than the previous generation for the first time since Harry Truman.
“As a millennial who has worked in a variety of jobs in my career, I know first hand how difficult it can be to try to save for retirement. Many jobs don’t offer a plan and unless you are paying into a retirement account automatically through your employer’s, it can be near impossible to consistently put money away,” said Sen. Brittany Pettersen. “The economy is changing, gone are the days where most workers have a pension. Young workers today are more likely to move between jobs instead of staying with one company for their career. Our benefits system must evolve with it, because right now, too many Coloradans don’t have the ability to save for retirement through their jobs.”
According to the AARP Public Policy Institute, if a person has a retirement savings contribution automatically deducted from their paycheck, they are 15 times more likely to save for their retirement.
So in February 2020, the Colorado Secure Savings Plan Board unanimously recommended Colorado create a state-facilitated, automatic retirement savings program for all Coloradans without access to workplace plans.
Based on their detailed analysis, the program will be based on thorough market and financial analyses and managed by a financial services company.
The bill will next be heard in the Senate Finance Committee.