WOONSOCKET – Rhode Island congressional and state leaders are promoting a new consumer finance tool designed to help residents begin saving for retirement.
The tool, dubbed “myRA,” is run through the U.S. Treasury Department and allows people to open a retirement plan with no minimum balance and without fees.
Senators Sheldon Whitehouse and Jack F. Reed met with Rhode Island Rep. David Cicilline last week at the NeighborWorks Blackstone River Valley to promote the tool, according to a press release.
“Despite the success and popularity of Social Security, most people will need additional savings to enjoy financial freedom in their golden years,” said Whitehouse. “The myRA program is an important first in closing the retirement savings gap and has the potential to help Rhode Islanders begin to save.”
The politicians cited a Pew Charitable Trusts study, saying more than 80,000 full-time workers in Rhode Island lack access to a retirement savings plan or pension through their employer. Half of the nation’s workforce lacks access to 401(k) programs, according to the release.
The impetus for last week’s event was to draw people’s attention to the program, which allows Rhode Islanders to set up Roth IRAs, meaning earnings on deposits are tax-free in the event people don’t access the money before retirement.
“It’s important that all Rhode Islanders know about the new myRA savings accounts that will allow them to save for their retirement in a simple, safe and affordable way,” said Cicilline.
More information about the program can be found at myra.gov.
