Dozens of residents and organizations turned up at a Connecticut Senate committee hearing today to voice their support for a proposal that would set up a state-run retirement plan open to all Connecticut residents and businesses.
Senate Majority Leader Martin Looney, D-New Haven/Hamden, and House Majority Leader Joe Aresimowicz, D-Berlin/Southington, both expressed support for the measure, encouraging their colleagues in the Connecticut General Assembly to take action on behalf of aging constituents who are rapidly approaching retirement without any savings.
“This plan, and those considered by other states, is self-sustaining, paid for through participant fees...Connecticut can’t afford not to take action. If older adults do not have enough money for a secure retirement, they will more heavily rely on Medicaid, which is the most expensive program in the state. Connecticut spent millions of dollars for Medicaid services to residents over age 65. These are dollars that the state can spend on other essential services like education and public safety. By helping people plan for self-sufficiency in retirement, the state will ultimately save money,”said CT AARP.
Proponents of the bill touted that it would be a portable way for Connecticut workers to save for retirement. It also would offer robust rates of return and greater overall savings than many plans currently on the market, said Win Heimer, executive vice president of the Connecticut Alliance for Retirement Americans.“Those plans often charge high administrative fees that eat away at potential savings.”