By Hank Russell
The New York State Secure Choice Savings Program, a new state-sponsored retirement savings program for private-sector employees who do not have access to a workplace retirement plan, has officially launched. Vestwell, a New York-based financial investment platform, will manage the program.
According to the governor’s office, over 50% of working New Yorkers do not have access to a retirement plan through their employer.
“With the launch of the New York State Secure Choice Savings Program, we are expanding access to retirement savings and empowering New Yorkers to invest in their future,” Governor Kathy Hochul said. “The program provides another tool for employees to build long-term financial security and plan for a dignified retirement.”
According to the Georgetown University Center for Retirement Initiatives, 20 states have enacted retirement programs for private-sector workers, and AARP reports that more than 1 million Americans have already enrolled in auto-IRA programs launched in recent years. With the addition of New York Secure Choice, the company said, the Empire State joins this growing movement and becomes the latest state to partner with Vestwell.
New York Secure Choice allows employees to save automatically through payroll deductions into portable Roth Individual Retirement Accounts (IRAs) they own and keep.
According to the company, Vestwell now powers 85% of government retirement programs, including 37 government-led savings programs across payroll-deducted IRAs, 529 Education Savings, and ABLE Disability Savings programs.
Following a successful pilot program, New York employers with ten or more employees that do not already offer a qualified retirement plan will now be able to provide their employees the opportunity to save for retirement at work.
“New York Secure Choice provides a simple way for workers in New York State to save for retirement with every paycheck,” said New York State Department of Taxation and Finance Acting Commissioner Amanda Hiller. “By making saving automatic, the program helps more New Yorkers take control of their financial future.”
“Being selected to power New York Secure Choice hits especially close to home for our team,” said Aaron Schumm, founder & CEO of Vestwell. “New York is where Vestwell was founded, where our headquarters are, and where so many of our employees live and work.”
This is how public and private sectors come together to make a real impact, by making saving simple for employers and accessible for workers who’ve historically had no on-ramp,” Schumm continued. “Adding New York to our growing partnerships and completing all three tri-state programs means millions more New Yorkers can start building the secure financial future they deserve.”