PA Small Business Owners Believe State Should Help Workers Save for Retirement, According to New AARP Study

High costs currently prevent most small businesses from offering workplace retirement savings options for employees

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Jun 20, 2018, 09:19 ET

HARRISBURG, Pa., June 20, 2018 /PRNewswire-USNewswire/ -- Pennsylvania's small business owners are concerned that their employees aren't saving enough money for retirement and believe state government should help workers save for the future, according to a new study released today by AARP Pennsylvania.

The 2018 AARP Pennsylvania Small Business Owner Survey showed almost three in four (72%) small business owners currently do not offer a retirement savings plan for their employees. Two in three (63%) of those who do not offer a retirement savings plan say they don't because the plans are too costly.

"National research shows only 1 in 20 workers will open a retirement account on their own, and they are 15 times more likely to contribute if it's offered at work," said AARP Pennsylvania State Director Bill Johnston-Walsh.

The survey showed most (88%) small business owners agree that Pennsylvania lawmakers should support a state retirement savings proposal. In fact, three-quarters (74%) of respondents support a privately managed, ready-to-go retirement savings option that would help small businesses owners offer their employees a way to save for retirement.

Johnston-Walsh said AARP is pleased to be working with State Treasurer Joe Torsella and a task force of legislators, business leaders and government officials to study how to improve retirement savings for our state residents. One of the issues being considered by that task force is development of a state-run retirement savings program for private sector workers.

"Small businesses play a vital role in Pennsylvanian's economy, employing about half of Pennsylvania's workforce. The vast majority of these employers recognize that being able to offer a state retirement plan will enable them to compete more effectively in attracting and retaining employees," said Torsella. "Through the efforts of Treasury's Task Force on Private Sector Retirement Security, of which AARP is a member, we are working towards a commonsense solution that will not only meet the needs of many employers but also give their employees a huge boost towards a more financially secure retirement."

"Enhancing retirement savings opportunities for Pennsylvania's private sector employees can't happen soon enough," said Johnston-Walsh. "The fact is when workers set aside money for retirement they are less likely to rely on public assistance programs later in life, saving significant taxpayer dollars for programs like Medicaid, Supplemental Security Income, the Supplemental Nutrition Assistance Program, and housing assistance."

The AARP 2018 Pennsylvania Small Business Owner Survey was a telephone study among 454 small business owners or decision makers about employee benefits at companies with 1-100 additional employees. Interviews were conducted March 12–March 30, 2018. You can read the entire survey at www.aarp.org/PARetirementSecurity.

About AARP
AARP has 1.8 million members in Pennsylvania. Follow AARP Pennsylvania on Facebook @AARPPA and on Twitter @ AARPPA.

AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering people 50 and older to choose how they live as they age. With a nationwide presence and nearly 38 million members, AARP strengthens communities and advocates for what matters most to families: health security, financial stability and personal fulfillment. AARP also produces the nation's largest circulation publications: AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org or follow @AARP and @AARPadvocates on social media.

CONTACT: Steve Gardner, AARP PA
(717) 237-6481 or [email protected]

Jacklyn Isasi, AARP PA
(267) 825-9928 or [email protected]

SOURCE AARP Pennsylvania