Today's retirement system is risky, confusing, and out of reach for many Oregonians.
There used to be an unwritten promise in the American workplace: If you worked hard, you could count on a secure retirement at the end of your career. Employees relied on a three-legged stool built from Social Security, pensions, and personal savings to help them live comfortably after a lifetime of work.
The Great Recession and the recent housing crisis have dramatically altered the American economy and caused our current retirement system to fall short, leaving many Oregonians high and dry when they reach retirement age.
Social Security isn’t enough to depend on in retirement and individual savings accounts have become confusing and difficult to access. Today, nearly half of all Oregonians do not have a retirement plan at work. As a result, many are at risk of living in poverty when they retire – unable to cover basic living and medical expenses.
More than one-third of Oregonians aged 55 and older have less than $25,000 in their retirement savings accounts.
At the same time that saving has become more challenging, demand on public services is growing. Oregon’s senior population is projected to increase from 502,000 to 950,000 by 2030. Unless we take action, this challenge for many Oregon families will become a social and state budgetary crisis for all of us.
Working Together to Secure Retirement for All Oregonians
With all of the other financial pressures facing working Oregonians, we need a simple structure that takes the guesswork out of saving for retirement.
The creation of an simple, portable and secure way for Oregonians to save the money they earn will help keep seniors from living in poverty and reduce pres- sures on public services.
By giving every working Oregonian an easy way to save for retirement, we can provide security for individuals, families and our community. It’s time to put Oregonians back in charge of their financial future.