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Task Force Encourages Attention on Retirement Savings Crisis

You are currently viewing Task Force Encourages Attention on Retirement Savings Crisis
State Facilitated Retirement Savings Program for Hawaiians
  • Post category:News

Task force that is legislative says Hawaii is facing a projected tax and spending shortfall of more than a billion dollars over the next 20 years. In fact, almost 215,000 Hawaii workers do not have access to a retirement savings program through their employer. It has sadly helped fuel a retirement savings crisis.

Task Force – Fiscal Cliff

“In fact, we are facing a $7.7 billion fiscal cliff in the next 15 years. This is going on as more people age out of the workforce without adequate savings. Plus, the number of working-age adults who can pay taxes to support government programs declines,” said Kathy Wyatt. She is the chairwoman of the task force and adult daycare center owner/operator.

The task force for Hawaii Retirement Savings, in an effort to address the issue, is recommending the creation of a state-facilitated retirement savings program.

If the legislature does pass Senate Bill 3289 a program could become a reality.

This bill would create a board to establish and run a state-facilitated automatic IRA program. There are appropriate funds for marketing and hiring an administrator and the support staff to start the program up over the next two years. Also, the board would be able to negotiate with private contractors. In fact, the program is going to be a public-private partnership. It is similar to the college 529 payroll savings program. Moreover, the state would hire private companies to manage the automatic IRA program and then invest the money. Also, the funds would be held in individual worker accounts. They would not be held nor invested by the state. Therefore, local businesses would be able to offer the payroll savings program to workers. It would be at little or no cost to the business.

Thus, to come up with the program, the task force met with and heard from local and national experts, small businesses, and financial institutions.

“In fact, doing nothing is not an option,” said Senator Brian Taniguchi. He is the chairman of the Senate Labor Committee. Also a member of the task force. “Every worker in Hawaii does deserves a chance for a secure retirement.”

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