According to a recent survey conducted by AARP, a concerning one in five Americans over the age of 50 have no retirement savings, and more than half (61%) worry they will not have enough money to support them through their golden years.
To help private-sector employees in New Jersey save for retirement, the State has launched “RetireReady NJ”, a program created by the New Jersey Secure Choice Savings Program Act and signed into law in 2019. With the rising concern over the retirement savings gap, this program aims to provide more workers in New Jersey with access to retirement savings plans.
What does this mean for employers?
Employers with 25 or more employees, that have been in business for at least two years without offering a qualified plan, are affected by this program.
The State has announced implementation deadlines for the RetireReady retirement program as follows:
- Businesses with 40+ employees must comply by September 15, 2024
- Businesses with 25-39 employees must comply by November 15, 2024
The New Jersey Department of the Treasury oversees compliance–employers who fail to register may be subject to hefty financial penalties.
What should employers do?
Employers can access resources and support through the New Jersey Retire Ready NJ website. The site offers detailed information, guidance, and tools to help businesses comply with the mandates and educate employees about the benefits.
Although signing up with the RetireReady program will allow you to comply with these mandates and fast-forward your ability to provide a retirement program to your employees, it’s not your only choice.
You have options when it comes to complying with the New Jersey state mandate! Counter Point works with leading companies that provide qualifying retirement and 401(k) programs. We’d be happy to connect you, so they can provide you with resources and guidance on what your business needs to do to comply.
For more information or assistance with compliance, don’t hesitate to schedule a call or send us an email.
The bottom line
The New Jersey RetireReady mandates represent a significant step forward in promoting retirement savings among employees. By providing access to retirement plans and encouraging savings, you can help your workforce prepare for a more secure and comfortable retirement!
