Don't have a 401(k) through work? Californians have CalSavers and other options
Years in the making, California's CalSavers retirement savings program is available now to hundreds of thousands of workers whose employers don't offer pensions or 401(k) plans.
The program is the state's response to a looming threat to its aging population: Millions of California workers, especially those in lower-wage jobs, have stashed away far too little money for their retirement. State Treasurer Fiona Ma warns on her office's website that more than half of workers age 25 to 44 have projected retirement incomes of less than twice the federal poverty level. That translates to an income of $27,180 for a person living alone or $36,620 for a couple.
"Among households age 55 and older, nearly one-third have no retirement savings or pension assets," Ma wrote, citing a 2015 report by the U.S. Government Accountability Office.
Although anyone can set up an individual retirement account, which offers some important tax breaks, studies show that people are far more likely to set money aside for retirement if they have a savings plan at work, especially if their . And according to a by the UC Berkeley Labor Center, more than 60% of private sector workers in this state who were 25 to 64 years old had no company-supplied plan to build savings for retirement by deferring some income (as in a pension) or redirecting part of
