Juneau, Alaska – AARP is pushing for legislative changes in Alaska to ensure residents have better retirement options. With a focus on both public and private sectors, Senators Cathy Giessel and Bill Wielechowski are championing bills aimed at improving retirement readiness across the state.
The goal of AARP is to empower individuals to have more control over their lives as they grow older, emphasizing the importance of financial stability in retirement. While Social Security remains a significant factor in retirement planning, it is not sufficient on its own, as highlighted by a decrease in the number of non-retirees confident in their savings, according to the Federal Reserve’s 2022 survey.
Senator Wielechowski introduced the Alaska Work and Save Program bill, which proposes an auto-IRA program for employees without access to a retirement savings plan at work. This initiative would allow individuals to save a portion of their Permanent Fund Dividend checks directly into retirement accounts, similar to 529 college savings plans, providing a state-facilitated private management option for Alaskan workers.
In efforts to address the lack of retirement options for small businesses in Alaska, Senator Wielechowski cited a survey showing that most businesses do not offer retirement plans due to cost barriers. The proposed legislation aims to make it easier and more affordable for businesses to provide retirement savings options for their employees.
Senator Giessel is advocating for a defined-benefit pension plan for public employees in Alaska, acknowledging the state’s current deficiency in retirement benefits compared to other states. The proposed plan seeks to retain public workers by offering a more stable retirement option, addressing the high vacancy rates in crucial public service roles such as teachers and firefighters.
Both senators underscored the urgency of improving retirement readiness in Alaska, noting the significant outmigration of working-age individuals in recent years. By providing comprehensive retirement solutions for both private and public sector employees, Alaska aims to rejuvenate its economy and retain a skilled workforce. AARP supports these legislative efforts to ensure a more secure retirement future for all Alaskans.
To delve deeper into the discussion on retirement readiness in Alaska, AARP Alaska has posted a full recording of the conversation on its Facebook page. As the state grapples with the challenge of preparing individuals for retirement, these legislative initiatives could be key in securing a prosperous future for Alaskans.