Opinion: Preparing to retire in Alaska

Has been updated: 19 by the time release date: twenty two by the time

AARP’s mission is to empower people to choose how they live as they age. The more money you have for retirement, the more options you have as you get older.

Working on bipartisan legislation that protects Social Security and sustains it over the long term is a top priority for AARP. But we know that Social Security is only one part of your retirement plan, and it’s not enough to rely on alone. Additionally, according to the Federal Reserve’s 2022 Household Financial Well-Being Survey, only 31% of non-retirees believe their retirement savings are on track; This was down from 40% in 2017.

That’s why we advocate for state-level reforms to help Alaskans of all ages build a foundation for a more secure retirement and choose how they want to live as they age. That’s what I’m doing. Sen. Kathy Giessel and Sen. Bill Wilechowski recently joined AARP members at a statewide telephone town hall to discuss legislation each has introduced to help Alaska’s workers prepare for retirement. Ta.

Mr. Wirechowski spoke about the Alaska Labor Savings Program bill (SB135). The bill would establish an automatic IRA program for all Alaska employees who do not have access to a workplace retirement savings plan and create an option to save PFD checks directly into retirement savings. account. Alaska Work and Save, like 529 college savings plans, would be state-sponsored and privately managed for Alaska workers’ retirement savings.

Wielechowski cited a recent AARP survey of small businesses in Alaska. According to the data, 64% of respondents do not offer severance options at work, with cost identified as the biggest barrier. “This is a fairly complex, time-consuming and expensive system that can cost small businesses thousands, if not tens of thousands of dollars,” said Sen. Wirechowski. Stated.

But that doesn’t mean companies aren’t prioritizing retirement savings for their employees, and privately managed turnkey retirement savings that help small businesses provide their employees with a means to save for retirement More than two-thirds support the option.

“We are on the brink of a retirement catastrophe as generations of people retire with little or no savings,” said Senator Wirechowski. “54% of households have no retirement savings, and the median retirement savings for ages 65 to 74 is $200,000.”

“Sixteen states have already done this with great success, and many other states have proposed similar legislation,” said Sen. Wierechowski. “Ultimately, this plan imposes no cost to the state. It is a reasonable, fiscally conservative way to encourage small businesses to have retirement plans, and it also encourages savings for their employees.” I think it will happen.”

Turning the topic to the public sector, Giesel discussed pensions in SB88 — Retirement Plan Defined Benefit Option, a civil service bill that would create a new small defined benefit pension for national and local government employees. “Alaska’s public employee retirement system is the worst in the country. We are the only state that does not have some form of defined benefit for at least one group of public employees,” Giesel said.

The plan would address Alaska’s average vacancy rate of 17% for public jobs such as snow plow drivers, teachers and firefighters. “We are losing firefighters and police officers to the Lower 48 states. After five years of service under the current defined contribution system, they are entitled and leaving the state,” Giesel noted. . She also said teachers in Alaska don’t receive Social Security, so they “don’t have any safety net in retirement.”

Citing recent polls, Giesel said an average of 68% of the population, regardless of political party and in every region of the state, supports modest pensions for public employees.

Both senators emphasized the continuing exodus of working-age people from Alaska over the past 11 years. They emphasized the impact of retirement benefits on economic vitality and the decision to leave the state.

Preparing for retirement is good for Alaska and good for Alaskans. With robust savings and retirement options in both the public and private sectors, we can maintain a thriving environment for small businesses and keep generations of Alaskans on the final frontier. We can maintain our programs and services. AARP supports both Alaska Work and Save (SB 135) and public employee pensions (SB 88).

A complete recording of the conversation is posted on the AARP Alaska Facebook page.

marge stoneking Since 2020, she has served as the Advocacy Director for AARP Alaska.

The views expressed here are those of the author and are not necessarily endorsed by the Anchorage Daily News, which welcomes a wide range of viewpoints.To submit your work for consideration, please send an email Commentary(at)adn.com. Submissions of less than 200 words should be sent to: Letters@adn.com or Click here to submit from any web browser.Read all guidelines for letters and comments here.