Comprehensive Retirement Bill Introduced In PA As Elderly Face Crisis

HARRISBURG, PA — With millions of older Pennsylvanians facing a crisis in retirement savings and available funding, lawmakers have introduced a new piece of comprehensive legislation to address the issue.

The long-awaited "Keystone Saves" bill, brought to the general assembly floor on Monday, would establish a voluntary retirement savings program for Pennsylvanians who are not offered a retirement plan through their job.

“A financially secure retirement should follow decades of hard work at the end of a career. Unfortunately, a growing number of workers are facing a retirement without sufficient savings,” said State Rep. Kyle Mullins (D-Lackawanna). “Under Keystone Saves, these employees would now have a chance to save for their future their way with no burden to taxpayers or employers.”

It comes in the wake of a new study from Pew Research indicating that the number of "financially vulnerable" Pennsylvanians over 65, quantified as those who make less than $75,000 per year, will increase by 17 percent from 2020 to 2035.

It'll cost Pennsylvania taxpayers an estimated $17.8 billion in that time span, Pew says.

"As these workers age, inadequate retirement savings will likely force reductions in retirement income and hence in the quality of life for many," the study notes. "At the same time, this shortfall in retirement income will increase state spending for Medicaid and other assistance programs."

Through Keystone Saves, individuals can set their own contribution levels to be automatically deducted from each paycheck. They'll be able to make their own investment choices, leave the program at any time, and change the level of their deductions.

The program has support from both parties, while various healthcare and industry representatives also voiced support.

“Keystone Saves is a win-win-win," Republican Pennsylvania Treasurer Stacy Garrity said. "Taxpayers save billions of dollars, employers get to offer a great benefit, and hardworking Pennsylvanians get an easy way to save for retirement."

Retirement has never been more expensive, and even for those who have planned carefully and saved large amounts, inflation and other financial pressures are creating significant stressors.

"Instead of enjoying their senior years, too many of our retirees find themselves straining to match insufficient savings with the costs of living and unforeseen expenses," State Reps. Tracy Pennycuick and Michael J. Driscoll wrote in a co-sponsorship memorandum for forthcoming legislation that would address the issue.

Pew also says they expect the "age dependency ratio," or the ratio of those over 65 to those of working age, to skyrocket by 29 percent by 2035. This "means that there will be fewer workers to support a burgeoning elderly population," the study adds.