Nearly Half of Working Kentuckians Lack Access to a Retirement Account at Work
Kentucky Center for Economic Policy
When it comes to a secure retirement many Kentuckians are in danger in part because they lack access to a retirement account at work that can help them save, new research by the Kentucky Center for Economic Policy shows.
Some facts from the report:
"Retirement security is a real concern for hundreds of thousands of Kentuckians and without that security, they end up in poverty in their later years or relying on family members or state resources to make ends meet," Ashley Spalding, author of the research and a policy analyst at KCEP, said. "A solution would be for the state to sponsor a new retirement plan for those who don't have access to one at their work place."
More than 25 states have considered proposals to study or implement such retirement plans, and a number have already taken steps to set up such plans, including California and Connecticut. With nearly 50 percent of Kentucky's private sector workers currently without access to a retirement account at their job, it's important our state follow suit, Spalding said.
A proposal in Kentucky's 2015 General Assembly would have created a retirement plan for employees at businesses that do not already offer one to their employees. Employees would have the option of participating in the retirement plan by having a portion of their paycheck invested in a Roth Individual Retirement Account (IRA). Once the state set up the retirement plan, it would be financially self-sustaining, and the role of employers is largely limited to setting up the payroll deduction for participating employees.
"Given the rapid growth in Kentucky's aging population and a declining share of businesses offering retirement plans, the problems of retirement security will only get worse if not addressed. It's important lawmakers and the governor take this matter seriously," she said.
You can read the full report here.
The Kentucky Center for Economic Policy is a non-profit, non-partisan initiative that conducts research, analysis and education on important policy issues facing the Commonwealth. Launched in 2011, the Center is a project of the Mountain Association for Community Economic Development (MACED). For more information, please visit KCEP's website at www.kypolicy.org.