Illinois looks to help more workers save for secure retirement

The Illinois General Assembly passed first-of-its-kind legislation in December designed to help more workers save for retirement.

Under SB 2758, Secure Choice accounts will be offered to individuals who lack access to employer-based retirement plans. These individuals will have the opportunity to automatically deduct a portion of their paycheck into a retirement account. New businesses and those with fewer than 25 workers also can participate. Participants will be able to choose between higher- and lower-risk investment options. 

The accounts will not be funded or guaranteed by the state, notes state Sen. Daniel Biss, sponsor of SB 2758. However, the state-based program will pool individual retirement accounts, thus allowing for lower fees and diversified, professionally managed investments.

According to Boston College’s Center for Retirement Research, half of the nation’s private-sector workers do not have access to an employer-sponsored retirement plan. Partially as a result, 53 percent of working households are “at risk” of not being able to sustain their standard of living once they retire — up from 31 percent in 1983. The goal of the Illinois legislation is to help more families build wealth and plan for a secure retirement. 

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Stateline Midwest ~ December 20141.55 MB
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