Millions of employees in New Jersey will now have the ability to save for a secure retirement through the launch of RetireReady NJ. Established by the New Jersey Secure Choice Savings Program Act, RetireReady NJ is a state-administered retirement savings program aimed at workers without access to private employer retirement plans.
New Jersey businesses with 25 or more employees that have been in business for two years or more and do not currently offer a qualified retirement plan will be required to register with the program. Employees will have the opportunity to begin saving for retirement through convenient payroll deductions into a Roth or Traditional Individual Retirement Account (IRA). Individuals who work for other employers or are self-employed can also save directly with RetireReady NJ.
“Every worker in New Jersey deserves to retire with dignity and financial security," said Governor Phil Murphy. "By launching the RetireReady NJ initiative, we are one step closer to making that a reality. Workers that otherwise did not have access to a retirement plan through their private employers will now have an opportunity to save, advancing our mission of making retirement accessible and supporting New Jerseyans through every stage of their careers.”
"Every worker deserves convenient, straightforward access to retirement savings options. RetireReady NJ will create opportunities for many more New Jerseyans to secure their financial futures,” said State Treasurer Elizabeth Maher Muoio. “I’d like to thank the hardworking staff at RetireReady NJ for getting this initiative off the ground quickly and efficiently, solidifying our role as a national leader among states offering retirement savings programs.”
“The launch of RetireReady NJ is an exciting advancement toward economic stability for employees in New Jersey who do not have access to a private pension plan,” said Todd Hassler, executive director of the Secure Choice Savings Program. “RetireReady NJ is helping eliminate disparities entrenched in our retirement systems by offering an affordable, reliable, and easy way to prepare our citizens for a dignified retirement.”
Vestwell, an employer and individual savings platform, is the administrator for the RetireReady NJ program.
“We are excited to see New Jersey launch its much-anticipated retirement savings program this summer,” said Douglas Magnolia, President of Vestwell State Savings. “As Vestwell powers the RetireReady NJ program, we are thrilled to partner with New Jersey and help expand access to retirement savings for private sector workers in the Garden State.”
According to AARP, 20 percent of adults age 50 and older have no retirement savings, and more than half (61%) are worried they will not have enough money to support themselves in retirement. RetireReady NJ was designed to help bridge this gap.
“We are thrilled that the Garden State is launching RetireReady NJ,” said Evelyn Liebman, AARP NJ’s Director of Advocacy. “Having access to a retirement plan at work is critical for building financial security later in life. And we know people are much more likely to save for retirement if they can do so automatically through their paycheck.”
This spring, five New Jersey employers participated in RetireReady NJ’s pilot program where over 250 workers gained the ability to save for retirement. Following its success, the program will now be expanded statewide.
There is no cost for employers participating in the program; payroll deductions integrate easily into existing payroll systems.
Mailers with detailed information about the program were sent earlier this month. Additionally, informational webinars will be hosted by RetireReady NJ for employers interested in learning more about its benefits.
For further details on RetireReady NJ visit RetireReady.nj.gov.
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