NC House Explores Exciting New Retirement Options for Small Business Employees

New legislation in North Carolina’s House aims to help employees of small businesses save for retirement. The proposed “Work and Save” program allows workers to put aside money from their paychecks if their employer does not offer a retirement plan.

Rep. Jarrod Lowery, who supports the bill, believes this program can benefit many North Carolinians. He envisions that if people start saving $150 a month, they can be in a much better position for retirement in the years to come.

The state treasurer would manage these retirement accounts. The program plans to kick off with $1 million from the state budget, but it won’t rely on ongoing government funding.

Workers can take their retirement savings with them when they switch jobs, which adds flexibility. Rep. Jeff McNeely, who also backs the bill, runs a small agricultural business. He thinks the savings plan could help small businesses attract and keep good employees. Competing with larger companies can be tough when smaller ones can’t offer as many benefits.

In the past, a similar bill didn’t pass, but supporters are hopeful this time. Rep. Harry Warren points out that this year’s House has more small business owners, which could influence the outcome. Additionally, concerns about the future of Social Security are leading more people to explore alternative retirement options.

Michael Olender from AARP is optimistic about this legislation. He notes that states with similar programs have seen positive results, benefiting both workers and businesses. About half of North Carolina’s private-sector workers currently don’t have access to a retirement savings plan, making this initiative even more critical.

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