The Murphy administration announced Wednesday the launch of RetireReady NJ, a state-administered retirement savings program for private sector workers.

The program was announced in April. As NJBIZ reported, it aims to fill the void for workers who do not have access to private employer retirement plans. It first launched as a pilot overseen by the Secure Choice Savings Board. Now, the state is expanding the program to all qualifying employers.

According to AARP, 20% of adults 50 and over have no retirement savings. Meanwhile, 61% worry about not having enough money to support themselves when they retire.

Some particulars of RetireReady NJ include:

• Businesses with 25 or more employees that have operated for at least two years and do not currently offer a qualified retirement plan can participate.
• Self-employed individuals, or those who work for other employers, can also save directly.
• Employees can save through payroll deductions into a Roth or Traditional Individual Retirement Account (IRA).
• There is no cost for employers to participate, with payroll deductions seamlessly integrated into the employers existing payroll system

Five New Jersey employers participated in the pilot, offering more than 250 workers with the opportunity to save for retirement.

Expanding access

Gov. Phil Murphy said that every Garden State worker deserves to retire with dignity and financial security.

“By launching the RetireReady NJ initiative, we are one step closer to making that a reality,” said Murphy in a press release. “Workers that otherwise did not have access to a retirement plan through their private employers will now have an opportunity to save – advancing our mission of making retirement accessible and supporting New Jerseyans through every stage of their careers.”

Workers that otherwise did not have access to a retirement plan through their private employers will now have an opportunity to save …
– Gov. Phil Murphy

“RetireReady NJ will create opportunities for many more New Jerseyans to secure their financial futures,” said State Treasurer Elizabeth Maher Muoio. “I’d like to thank the hardworking staff at RetireReady NJ for getting this initiative off the ground quickly and efficiently – solidifying our role as a national leader among states offering retirement savings programs.”

Leading employer and individual savings platform Vestwell administers RetireReady NJ.

Vestwell State Savings President Douglas Magnolia said his organization is excited for the launch of the much-anticipated program.

“As Vestwell powers the RetireReady NJ program, we are thrilled to partner with New Jersey and help expand access to retirement savings for private sector workers in the Garden State,” said Magnolia.

“Having access to a retirement plan at work is critical for building financial security later in life,” said Evelyn Liebman, AARP NJ’s director of advocacy. “And we known people are much more likely to save for retirement if they can do so automatically through their paycheck.”

The state plans to hold informational webinars to provide employers with more information about RetireReady NJ. More information on the program is available here.