As we’ve been saying for many years, America faces a retirement savings crisis. We think Congress has a good opportunity to address the crisis, which is why we recently sent comments to the House Ways and Means Committee recommending ways to fix the nation’s retirement system. However, we’ll freely admit that there’s more than one way to skin a cat.
Today, the Asset Building Program is releasing a new issue brief about an innovative, state-level response to the retirement savings crisis – the California Secure Choice Retirement Savings Program. Currently, over six million private sector workers in California lack access to a retirement savings account through their employers; nationwide, only about half the private workforce has access to such accounts, and low-income workers have particularly low rates of access. California Secure Choice (“CSC”) would automatically create an account for all private sector workers in the state who lack coverage through their workplace, thus enabling a much broader swath of the population to accumulate essential savings to supplement their Social Security benefits. Below are some key features of the program: