WCAX: New law encourages Vermonters to save for retirement

June 7, 2023

MONTPELIER, Vt. (WCAX) - A new Vermont law is designed to encourage more Vermonters to save up for retirement.

Vermont Treasurer Mike Pieciak backed the public retirement initiative called “VT Saves.” It passed through the Legislature and was signed into law by Gov. Phil Scott last week.

The program requires employers not already offering a retirement plan to sign up for VT Saves. That creates a Roth IRA for employees with automatic payroll deductions.

Pieciak says the program doesn’t cost the employer anything, and employees are 15 times more likely to save for retirement when they have access to a plan. “You have to stretch to pay your bills, live in your home. To do all of that without further assistance from the state and federal government in terms of additional benefits, it can mean a retirement that means a lot of stress,” he said.

According to the treasurer’s office, people in other states with similar IRA accounts save about $2,000 annually.

The treasurer’s office will hire a director in the coming months and VT Saves is expected to launch in 2025.