Dear Editor,
As we welcome the New Year, many Vermonters set resolutions to build new skills, improve their health, or spend more time with loved ones. This year, let’s add a resolution that really pays off: saving for retirement.
Saving for retirement can be daunting, especially for Vermonters living paycheck to paycheck and struggling to make ends meet. While it can be difficult to know where or how to begin, it’s crucial to start saving as early as possible, and saving a small amount regularly can add up significantly over time.
Studies show that individuals with access to a workplace retirement plan are 15 times more likely to save for their future, but nearly half of working-age Vermonters aren’t offered a retirement plan through their employer. These rates are even higher among women, BIPOC Vermonters, and residents of our rural communities. Unfortunately, many of these workers aren’t saving anything for retirement.
To help Vermonters secure their financial future and retire with dignity, the Treasurer’s Office recently launched Vermont Saves, a new retirement program for working Vermonters who aren’t offered a retirement plan through their employer. The program is of no cost to Vermont employers.
Employers with 5 or more employees who do not currently offer a retirement plan will be required to register for Vermont Saves by the end of February 2025. Their employees will then be automatically enrolled in a Roth IRA account, with flexible options to save for retirement at their own pace.
Employees can set their contribution rate or use the program default, which is 5% of their pay. They can also choose from a menu of investment options or be enrolled by default in a target-date fund based on their age. Savers can always access their contributions or opt out of the program at any time.
Vermont Saves opened for enrollment in early December 2024 after earning unanimous support from the Legislature and Governor Scott in 2023. Our office has worked hard to launch the program ahead of schedule, expanding retirement access to Vermonters who have been historically left out and helping Vermonters start saving as soon as possible.
Eligible employers have already begun receiving information about enrollment, and many have already enrolled, enabling their employees to start saving. Importantly, Vermonters who are self-employed or work for an employer who isn’t required to participate in the program may still be eligible to sign up for Vermont Saves directly.
The New Year is the perfect time to set goals and plan for the future. In 2025, I hope Vermonters will prioritize their financial well-being and save for a secure retirement.
No one should have to work their whole life and retire without savings. Vermont Saves provides an easy and affordable way for Vermonters to save for retirement, ensuring they can live with confidence and security in their golden years. I encourage all Vermonters to visit vtsaves.vermont.gov and, if eligible, participate in the program.
May your New Year be filled with joy, prosperity, and cherished time with loved ones.
Mike Pieciak, Vermont State Treasurer
