Gov. Doug Ducey signed a bill that would establish a study committee to look at the benefits of a retirement savings plan for Arizona workers who may not have access to a 401(k) at their job. Several other states are ahead of the game and have already passed work and save legislation or are in the implementation phase.
Brendon Blake is with AARP Arizona. “There are only about 5% of people who go out on their own to get an IRA,” he said. “In addition, a lot of these IRAs may have account minimums, and people may not have that kind of capital to invest even $2,500 at the start of something. So it’s easier with a program like this that has no account minimums [and] the fees are lessened.”
Blake hopes a work and save bill can successfully move through the legislature next session. More than 50 million American workers have no access to a retirement savings plan, according to AARP.
