EAU CLAIRE (WQOW) – Wisconsin’s state treasurer says people can’t live off Social Security alone, so she’s proposing a few recommendations to the state that could help Wisconsinites save money for retirement.
In the coming months, Wisconsin Treasurer Sarah Godlewski plans to introduce bills to implement several recommendations from the retirement security task force, including “Wisconsin Saves.”
Wisconsin Saves would create a state-facilitated, privately managed IRA program that would offer a simple benefit plan for employees who don’t have a retirement plan through their employer.
She also plans to introduce “401(K)ids,” an at-birth retirement savings program that would allow children born in Wisconsin to start building wealth regardless of family income.
“In this example, if we would just start an account for $500 the day a kid was born, and do nothing and have a return rate of 7%. It would be over $40,000 by the time they’re 65, which could be a game-changer,” Godlewski said. And that’s doing nothing. If you would add $100 a year to that account, it would be over $163,000.”
Godlewski says the state would provide the initial seed capital to start account growth.