Working to Bring Retirement Solutions to Maine’s Small Businesses & Their Employees

Workers across America are facing a retirement crisis, and Maine is no exception. Indeed, polling from AARP shows that two in three Maine registered voters say they are anxious about saving enough money for retirement, and more than half report feeling behind schedule in saving for retirement. Small businesses and their employees are especially vulnerable - 67% of workers at Maine businesses with fewer than 100 employees do not have access to a retirement plan at work, compared to just 31% of workers at larger businesses.

Maine small business owners treat their employees like family -- they want their employees to have more options to save for retirement, but struggle to offer programs due to the cost, time, and complications involved. Maine voters overwhelmingly agree (86%) that state lawmakers should support legislation that makes it easier for workers to save for retirement.

Maine’s legislature is considering action on this issue by creating a Work and Save program to help Mainers grow the savings they need to take control of their futures and to be prepared for future life needs like health care. The program, known as the Maine Retirement Savings program, would operate like a 529 college savings plan.

Work & Save programs are public-private partnerships between the state and private sector to allow employees to save for retirement automatically through simple payroll deductions. Programs like this are in effect in states like Oregon and Illinois, helping workers to easily save for their financial future. 

With the Maine Retirement Savings program, an employee’s contributions are made with an automatic deduction from their paychecks. The accounts are voluntary for employees, and it’s up to each worker to decide if they want to participate and how much they want to put away. 

Giving employees a simple way to save for retirement means fewer Mainers will need to rely on public assistance later in life, which saves taxpayer dollars. In fact, Maine taxpayers could save as much as $23 million in the next 10 years by helping people save for their retirement.

Learn more about the Maine Retirement Savings program by watching our webinar with Lori Parham, State Director at AARP Maine.