Savings

Legislation Creating a Retirement Savings Plan for DE Residents Gets AARP Support

AARP Delaware and State Treasurer Colleen Davis support legislation to create a low-cost retirement savings plan for Delawareans.

If passed, the plan known as Delaware Expanding Access for Retirement and Necessary Savings or DE EARNS would provide workers and employers with access to low-cost retirement savings plans.

It is a universally available, state-facilitated retirement savings scheme that would allow all workers to save for retirement.

The program is designed for middle- and low-income workers who do not have access to employer-sponsored plans.

State Treasurer Colleen Davis said the program was designed after she saw that half of Delaware workers weren’t saving for their future through a 401k-like plan.

“We really wanted to help these low-to-low-to-moderate income households establish this kind of retirement savings not just for the next pandemic, but really and genuinely for their future retirement years so they can retire in safely and with dignity,” Davis said.

But AARP Financial Ambassador Jean Chatzky says the program also helps businesses.

“This program is free to the employer,” Chatzky said. “So small business owners who are concerned that this will be a burden on them really don’t have to worry at all.”

Davis notes that this program is also a recruiting tool because it can be offered by any small business as a benefit even when they are unable to offer a strong benefits package.

A bill to create the program passed the House last month. He cleared the Senate Labor Committee on Tuesday, but faces a Senate Finance Committee hearing before heading to the Senate.