State program was created for workers who have no retirement savings plan through their employers; Half of Californians are unprepared for retirement
SAN DIEGO (Dec. 14, 2020) — CalSavers is the state of California’s new retirement savings program created for the millions of Californians who do not have a way to save for retirement through their job. United Way of San Diego County (UWSD) is encouraging all eligible San Diegans to enroll in the program—and recommending that all eligible employers facilitate a CalSavers program for their workers.
CalSavers was created by legislation in 2016 requiring California employers that do not already sponsor a retirement plan to participate in a CalSavers automatic enrollment individual retirement account (IRA). The program makes it easier for workers to save for their retirement by allowing local small businesses and companies to provide workers with a retirement savings option—with no employer fees, no fiduciary liability and low administrative complexity.
“Too many San Diegans are unprepared for retirement, threatening the stability of their families,” says Nancy L. Sasaki, President and CEO of United Way of San Diego County. “Given today’s economic uncertainty, without an easy way to save for retirement, many workers simply won’t. This lack of access to employer-sponsored retirement plans disproportionately affects younger workers and people of color, who already face significant financial hurdles. However, mounting evidence shows that access makes a difference. That’s exactly what CalSavers provides, and why we’re encouraging all eligible employers and employees to take advantage of this amazing program now.”
UWSD has also joined forces with core local partners to spread the word about CalSavers in San Diego, including:
City of San Diego – Economic Development Department
East County Economic Development Corporation
San Diego Chamber of Commerce
San Diego Regional Economic Development Corporation
“The Brink” Small Business Development Center at USD
Statistics about retirement savings in California:
Nearly half of all Californians have inadequate savings, and are on track for significant economic hardship in retirement.
5 million Californians lack a way to save for retirement at work.
There are two ways to join the program: at work through a participating employer or directly for those who do not work for a participating employer. At work, employees are enrolled automatically into CalSavers unless they choose to opt out. Once enrolled, employees can contribute to their personal retirement account automatically with each paycheck. Participants can stick with the standard account settings or choose their own. To ensure CalSavers works for our mobile workforce, savers can keep their account as they move from job to job, and self‐employed individuals can participate.
Eligible employers can register for CalSavers at any time by the following deadlines:
Businesses with over 100 employees: September 30, 2020 (deadline has passed, but employers can still enroll)
Businesses with over 50 employees: June 30, 2021
Businesses with five or more employees: June 30, 2022
“CalSavers is free for businesses,” says Sasaki. “It’s an easy way to provide for your financial futures and help your employees thrive. We encourage everyone to enroll in this valuable program as soon as possible.”
For 100 years, United Way of San Diego County has aligned with partners to address inequities in the region and help underserved communities. United Way’s specialty lies in identifying sustainable, long-term goals and achieving them through leveraging data and partners’ expertise to better understand root causes and putting impactful solutions into action.
United Way’s work, in partnership with others, uses shared goals, innovation and proven practices to transform the lives of children, young adults and families in the San Diego region. United Way focuses on educational milestones, such as kindergarten readiness, third-grade literacy, high school preparation, and college and career pathways. Learn more and get involved by visiting www.uwsd.org, Facebook, Twitter, or by calling (858) 492-2000.
CalSavers is California’s new retirement savings program that will offer millions of workers in California the opportunity to get on track for the future. CalSavers is available to California workers whose employers don’t offer a workplace retirement plan, self-employed individuals, and others who want to save extra. Savers contribute to an Individual Retirement Account (IRA) that belongs to them. Employers that don’t offer their own plan will register for CalSavers by their deadline and facilitate their employees’ access to the Program.