Mainebiz

W W W. M A I N E B I Z . B I Z 23 M AY 1 4 , 2 0 1 8 F O C U S W E A LT H M A N A G E M E N T / R E T I R E M E N T at a time, but over time it gets to be a substantial amount for them." Worsening problem "People who are age 50 or 55, now, have saved much less for retirement than [people in their 50s] were saving 15 or 20 years ago, which is pretty troubling," says Philip Trostel, an economics professor at the University of Maine, Orono. In a 2017 report for AARP Maine, he wrote: "Asset accumula- tion for retirement has dramatically fallen, despite the fact that we're seeing increasing prosperity." Trostel and AARP Maine's direc- tor, Lori Parham, say research sug- gests retirement savings 10 to 12 times a worker's current income is for most nowhere near attainable. With savings for retirement declining, the problem is worsening. ere's a rule of thumb that says workers should put away 10% of earn- ings. "It's simple math," he says. "You have, say, a 40-year work career and expect a 20-year retirement. If you're saving 10% over 40 years, with com- pound interest, then you're going to be able to largely keep your same standard of living. And you can keep that same standard of living particularly if you have Social Security income as well." Overall, the saving rate has dipped. "You see more reliance on debt than before," he says. "Some of it has been a cultural change: People haven't been as worried about savings as they used to be." Twigge says IDEXX finds that automatic enrollment works well for addressing the situation. "If someone is entitled to a benefit, but they have to opt in, it can take them a long time to decide to opt in," says Twigge. "at's what companies with low participation typically see. When you join us, you're automatically enrolled. en you have to make a conscious deci- sion to say, 'I don't want to prepare for retirement.' at's harder than saying, 'I want to prepare for retirement, but maybe next year' — and it keeps becom- ing something to postpone." Sweetening the pot IDEXX matches up to 5% of employee contributions. (e 5% match, up from 4%, was a reinvestment of financial C O N T I N U E D O N F O L L OW I N G PA G E » State-sponsored retirement plans Emerging state-sponsored retirement saving plans include: Automatic-enrollment: payroll-deduction individual retirement accounts Open Multiple Employer Plans: essentially a 401(k) plan offered to workers from different companies Marketplaces: state-sponsored websites that enable small businesses to find prescreened retirement saving or pension plans. In the wake of stagnant coverage trends and lacking comprehensive federal legislation, several states have acted on their own. California, Connecticut, Illinois, Maryland and Oregon have enacted Secure Choice plans, a voluntary workplace retirement savings option based on the auto-IRA, with the state sponsoring a low-cost auto-enrollment payroll deduction plan managed by private-sector pro- viders, a structure similar to Section 529 college savings plans. Washington and New Jersey are developing retirement savings marketplaces. Other states are considering Secure Choice plans, marketplaces, or other options, such as Vermont's decision to start an open Multiple Employer Plan. S O U R C E : State Sponsored Retirement Savings Plans: New Approaches to Boost Retirement Plan Coverage by William G. Gale and David C. John S O U R C E : Pew analysis of 2012 Census Bureau Survey of Income and Program Partici- pation data/2017 The Pew Charitable Trusts Securities and insurance products are offered through Cetera Investment Services LLC, member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with Saco & Biddeford Savings Institution where investment services are offered. Investments are: We help take the mystery out of investing and preserving wealth. An Approach Designed for You. sbfsonline.com 252 Main Street, Saco ME 04072 1-888-978-PLAN(7526) Matthew A. Cyr, AIF® Financial Services Program Manager & Senior Financial Advisor Gary B. Trempe, AIF®, CRPC® Financial Advisor James P. Carter Financial Advisor Lisa P. Dube Administrative Assistant PARTICIPATION IN EMPLOYER-SPONSORED RETIREMENT PLANS Millennials Gen Xers baby boomers All 22+ 31% 49% 56% 48% 31% 49% 56% 48%

• Cover