Finally, a Retirement Plan for Job-Hopping Millennials
Workers in their 20s and 30s are changing jobs at a record pace, yet they often view retirement stability as a back-burner issue.
A law passed in Maryland last summer could give those without conventional pensions or 401(k) plans a way to save for retirement without the nuisance of setting up individual savings accounts. But despite broad bipartisan support in the state, the application of the law has now stalled with a new Republican Congress and White House.
Maryland is one of only a handful of states to try such a plan, which eases the costs and strain for smaller companies wrestling with retirement options. This city’s boutique tech firms, brick-lined coffee shops and retooled public schools attract a younger, urban population for which the new law could be indispensable.
Small employers would need only allow for automatic payroll deductions, and their employees could access a portable retirement plan with money that moves with them from job to job, without the hassle of the forms and transfers that go with leaving a company 401(k) program.
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