183. MarylandSaves: Retirement savings made easy, with Glenn Simmons

This episode, we're talking about saving for retirement, specifically how we can help our employees save more money for retirement.

The general story we keep hearing is, as Americans, we aren't saving enough. The economy is playing a role, with 54% of Americans either reducing the amount they are saving or stopping all savings due to inflation, based on a survey by Allianz. The survey also showed the following:

43% respondents report having to dip into retirement savings to meet rising costs75% say they are worried the cost of living will impact their retirement plans25% of U.S. workers have no retirement savings at all36% believe their retirement plans are on track

Even more statistics show those who are close to retirement age do not have enough to support themselves for an extended period of time. This is an issue that impacts us all. Local and state governments are likely to shoulder a share of the financial burden when it comes to those who don't have retirement savings (which means we'll all have to chip in for support).

But in Maryland, and handful of other states, there is help on the way. A new program, MarylandSaves, was launched on September 15th 2022, making it easier for employers to provide workers with access to a retirement plan.

MarylandSaves is a byproduct of a law that was passed in 2016 by the General Assembly, mandating that employers in Maryland who pay their employees with an automated payroll system or service must offer their employees access to a retirement plan. Maryland become just the 5th state to enact what Glenn Simmons, my guest today, calls "a state sponsored auto IRA program".

Employers who participate in MarylandSaves, or offer another qualified program, will receive an annual waiver for their yearly $300 State Department of Assessments & Taxation Report filing fee. To qualify for the 2023 waiver, employers must enroll by December 1st 2022. However, you can still earn that waiver beyond 2023 just by enrolling in the program. The waiver applies every year after you enroll.

In this episode, I speak with Glenn Simmons, Executive Director of the Maryland Small Business Retirement Savings Program - the driving force behind MarylandSaves. Together we dive deeper into how programs like this work, how employers like you can get started, what it means for your employees, and what a difference this can make in the lives of future retirees.

Resources

Allianz Press Release; Inflation Causing Majority of Americans to Stop or Reduce Retirement SavingsPwC, Retirement in America ReportMarylandsaves.comGlenn Simmons, Executive Director/CEO at Maryland Small Business Retirement Savings Program, LinkedIn profile