CalSavers Workplace Retirement Savings Plan
CalSavers: Trusted. Simple. Portable. Available to 7.5 million Californians!
CalSavers is a state-sponsored retirement program that provides Californian’s with a unique opportunity to save for the future. Signed into law in September 2016, CalSavers requires employers with at least 5 employees to either offer a private workplace retirement plan with automatic deduction or facilitate access to the CalSavers Program. For 7.5 million Californian’s, CalSavers is an opportunity to save for their golden years.
Across the state, millions Californian’s work for employers who don’t offer a workplace retirement plan. Studies show that workers are 15 times more likely to save if they have a retirement option at work, and 20 times more likely to save if they are automatically enrolled. Next to competitive compensation, having a workplace retirement savings program is the second most important incentive for recruiting and retaining employees. According to the Centre for Economic and Business Research, 50% of employees over 55 and 59% of those ages 18-34 believe their employers should be doing more to guarantee their financial stability in retirement.
Many employers are unable to afford to offer a private workplace retirement plan for their employees. However, CalSavers provides employers a way to offer their employees a retirement savings benefit without the administrative complexity, fees, or fiduciary liability of existing options. For employees, CalSavers offers a completely voluntary, low cost, portable retirement savings vehicle with professionally managed investments and oversight from a public, transparent board of directors.
According to Pete Manzo, President and CEO of United Ways of California. “CalSavers will ensure nearly all Californians working in the private sector have an option to save for retirement through payroll deduction, which research has shown sharply increases savings rates, while giving employers a no cost, hassle-free way to help their employees save for the future. We are excited to bolster the mission of CalSavers, to ensure millions more California workers have a path to financial security in retirement by providing a simple, portable, low-cost way to invest in their futures.”
United Ways of California is excited to work with a litany of partners including the California State Treasurer’s Office, Small Business. Majority, AARP and others on the CalSavers Program. CalSavers will ensure all that Californians have a path to financial security in retirement by providing a simple, portable, low-cost way for workers to invest in their futures.