Sweet summertime is here and our productivity is at an all time low. 🤸 How do they expect us to work when there’s a backyard, a grill, and some cold ones in the cooler? If you see us playing hooky, no you didn’t. 🫣🍻
The PA House recently passed a bill that would give those without employer-sponsored retirement plans a way to save. 💰 We’re comin’ at you with the latest!
Here’s Five Fast Facts on the bill and possible state-managed retirement accounts:
- ⏩ Just Passing Thru - A new bill allowing employees to save money for retirement through state-managed savings accounts just made it through the PA House of Representatives. It squeezed through with a 102-101 vote along party lines. Now, it’s in the Senate’s hands.
- 💵 Save It For Later - The proposed Keystone Saves accounts would look and feel like PA’s 529 plans that help families save for future college expenses. Through the 529s, contributions are tax-free (after income tax). You can also withdraw funds penalty-free as long as they go to qualified educational expenses. Also like 529s (and unlike a company match program), PA wouldn’t contribute any money, just manage it.
- 💼 Bridging the Gap - According to state Treasury data, it’s estimated that over 2.1 million PA residents work for employers who don’t offer retirement plans. The Keystone Saves program would let employees set aside a part of their paycheck for retirement, complete with automatic deposit.
- 🪙 Pretty Pennies - A lack of employer-sponsored retirement plans has a negative impact on PA’s economy. According to a task force, unprepared retirees could cost the state an extra $14B in social services by 2030. It also costs the state around $1.4B in taxes.
- 🤑 Next Up - PA wouldn’t be the first to create a state-managed retirement plan. So far, 17 other states have already done so. Data from May shows that over 250,000 employers registered for those plans, helping workers save almost $2B in retirement dollars.
🔥Bottom line: This bill has been in the works for a couple years. So far, the Senate hasn’t acted on it, so we’ll see if they do this time around. They have until the end of next November (2026). Thinking about betting the ranch on that new Free Diddy coin? If you’re close to retiring, you might want to sit tight. Head to this article for more on crypto and retirement!
Does your job offer a retirement savings plan?
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