RetireReady NJ is targeted at closing the retirement savings gap. One million employees have no access to an employer-sponsored retirement plan. (Dana DiFilippo | New Jersey Monitor)
One year after the launch of a state-run retirement savings program aimed at private sector workers, more than 18,000 New Jerseyans have signed up and the program has surpassed more than $8.1 million in assets, state officials announced this week.
RetireReady NJ, established by a law Gov. Phil Murphy signed in March 2019, is intended to provice workers at small businesses with an easy way to save for retirement. Todd Hassler, executive director of the program, formally known as the New Jersey Secure Choice Savings Program, said in a statement that it provides a model for other states looking to give workers accessible ways to save.
“These accomplishments demonstrate New Jersey’s commitment to improving the retirement outcomes of our citizens. The RetireReady NJ team is very proud of the difference we are making in the financial security of the citizens here in New Jersey,” Hassler said.
RetireReady NJ is targeted at closing the retirement savings gap. One million full-time workers statewide are working without access to an employer-sponsored retirement plan, the American Retirement Association says.
At least 20 states have implemented their own retirement savings programs, according to Georgetown University.
Under RetireReady, New Jersey businesses that have been operating for at least two years and have at least 25 employees are required to register if they do not offer qualified retirement plans. The program is free for all employers to implement. So far, more than 1,200 employers have joined the program.
Workers who don’t opt out can contribute to a Roth or traditional IRA through payroll deductions.
The program was set to be implemented in 2021, but was repeatedly delayed due to the pandemic.
“The staff deserves credit for positioning New Jersey as a model for how states can offer accessible retirement savings programs,” State Treasurer Liz Muoio said in a statement.
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