Governor Tony Evers has formed the Retirement Security Task Force, and announced that State Treasurer Sarah Godlewski would lead the effort.
In a news release, Godlewski said, like citizens nationwide, Wisconsinites are not saving enough for retirement and that an estimated 400,000 Wisconsinites are at risk of retiring in poverty by 2030. The task force, she said, will “identify effective and achievable solutions that will provide an opportunity for all Wisconsinites to save that is separate from the WRS (Wisconsin Retirement System).”
Below is State Treasurer Godlewski’s overview:
Why a Retirement Security Task Force?
Wisconsin’s growing elderly population is ahead of the national trend. By 2030, there will be a projected 60% increase in the number of people age 65+. Further, Wisconsinites are not set-up for success. The typical working-age household has less than $3,000 in retirement savings. It’s not that Wisconsinites don’t want to save, it’s that they have been living under economic conditions that have made saving either impossible or inaccessible. Recently, AARP of Wisconsin did a study that identified 1 in 7 registered voters in Wisconsin have no way to save for retirement at work. Yet, 82% would take advantage if a savings program for retirement was available. The Governor and Treasurer believe hard-working Wisconsinites deserve to have peace of mind and feel secure when they retire.
Financial Risk if No Action is Taken to Address the Retirement Crisis.
The long-term financial health of Wisconsin is at risk if no action is taken. Projected expenditures on senior programs (i.e. Medicaid, Homestead Tax Credit, Wisconsin Home Energy Assistance Program and Supplemental Security Income) are estimated to be $4.7 billion annually by 2030 an increase of $3.5 billion from 2015. With the cost of living increasing and retirement savings decreasing, it is estimated that 400,000 Wisconsinites are at risk of retiring in poverty by 2030. If lower and moderate income households (up to $40,000/year) were to save 3% of their income through 2030, state expenditures in 2030 may decrease by $3.1 billion annually.
Why should Public Employees care?
Public employees work hard and deserve to retire in a financially secure manner. There is a misperception that state employees, to include public educators, have an unfair advantage with savings through the Wisconsin Retirement System (WRS). That said, what the Governor and Treasurer are proposing with this Task Force is to identify effective and achievable solutions that will provide an opportunity for all Wisconsinites to save that is separate from the WRS.
For more information about the Retirement Security Task Force, please reach out to the State Treasurer’s Office at email@example.com or 608-266-1714.
In other legislative action this week, the Senate and Assembly Committees on Education held a joint public hearing Thursday on a series of bills created as a result of the Legislature’s Blue Ribbon Commission on School Funding. To see the full slate and email the Senate and Education committees, click here. WEAC has not taken a formal position on the bills, having no opposition to the proposals.
To contact your elected officials on any issue, use the “Find Your Legislators” link at www.weac.org/take-action. For more information to get even more involved, email Christina Brey, WEAC Public Affairs.
Bills We’re Watching
See all the bills we’re watching at www.weac.org/bills.