New Jerseyans who do not have access to private employer retirement plans can now take part in a state-administered retirement savings program that launched Wednesday. RetireReady NJ, established by the New Jersey Secure Choice Savings Program Act, will allow millions of New Jersey employees to save for a secure retirement.
“Every worker in New Jersey deserves to retire with dignity and financial security,” Gov. Phil Murphy said. “By launching the RetireReady NJ initiative, we are one step closer to making that a reality.”
New Jersey businesses with 25 or more employees that have been in business for two years or more and do not currently offer a qualified retirement plan will be required to register with the program. Individuals who work for other employers or who are self-employed also will be able to save directly with RetireReady NJ.
There is no cost for employers to participate in the program. Employees will be given the opportunity to begin saving for retirement through convenient payroll deductions into a Roth or Traditional Individual Retirement Account.
“Every worker deserves convenient, straightforward access to retirement savings options. RetireReady NJ will create opportunities for many more New Jerseyans to secure their financial futures,” Treasurer Elizabeth Maher Muoio said. “I’d like to thank the hardworking staff at RetireReady NJ for getting this initiative off the ground quickly and efficiently, solidifying our role as a national leader among states offering retirement savings programs.”
“The launch of RetireReady NJ is an exciting advancement toward economic stability for employees in New Jersey who do not have access to a private pension plan,” Todd Hassler, executive director of the Secure Choice Savings Program, said. “RetireReady NJ is helping to eliminate the disparities entrenched in our retirement systems by offering an affordable, reliable, and easy way to prepare our citizens for a dignified retirement.”
Vestwell, a leading employer and individual savings platform, is the administrator for the RetireReady NJ program.
According to AARP, 20% of adults age 50 and older have no retirement savings, and more than half (61%) are worried they will not have enough money to support themselves in retirement. RetireReady NJ was designed to help bridge the gap for workers without access to a retirement plan.
This spring, five New Jersey employers participated in RetireReady NJ’s pilot program, in which more than 250 workers gained the ability to save for retirement. Following the success of the pilot, the program will now be expanded to all qualifying employers.
