Too many Alaskans have no workplace retirement plan. Alaska Work and Save offers a practical path toward changing that.
For many Alaskans, retirement — if they can retire at all — will mean surviving. More than half of households age 65 and older have no retirement account assets.
For Generation X, the next group nearing retirement, the typical household has about $40,000 saved, enough to cover roughly one year when combined with the $17,800 average annual Social Security benefit for households age 50-plus. Nearly half of Alaska’s private-sector workers have no access to a workplace retirement savings plan. Without a workplace plan, fewer than 5% of workers will save on their own.
But the same people are 20 times more likely to save when they are automatically enrolled in a payroll deduction plan. Alaska Work and Save is a public-private partnership designed to solve one very specific problem: the lack of access to workplace retirement savings programs. With the bipartisan leadership of Sen. Bill Wielechowski and Rep.
Mia Costello , SB 21 could allow more than 100,000 Alaskan workers to start saving and move toward a secure retirement. The program would allow workers to fund their savings through automatic payroll deductions into retirement accounts that they own and control. Workers can adjust contributions, choose investments, opt out at any time, and take the account with them if they change jobs. Alaskans could even contribute their Permanent Fund dividends if they choose.
For employers, especially nonprofits and small businesses that can’t offer their own retirement plans, the program is intentionally simple. There are no employer costs, no fiduciary liability and no administrative complexity. Employers merely facilitate payroll deductions — something they already do for federal taxes — and in return, they’re able to compete for workers with larger companies that already offer retirement benefits. For the state, startup costs are repaid through participant fees, resulting in no long-term cost to the state.
In fact, increasing retirement savings today means fewer Alaskans relying on public assistance in the future, saving the state money over time — projected at more than $700 million over the next 20 years, and much more as our population continues to age. This isn’t a partisan idea or an untested experiment.
Over the past decade, 17 states have enacted state-facilitated auto-IRA programs like Alaska Work and Save, and workers in those states have already saved over $3 billion collectively.launched the first program in 2017, and today, more than two-thirds of participants remain enrolled and saving across all income levels and ages. Here in Alaska, support is strong and broad-based. Seven in 10 small-business owners support a public-private retirement savings program, including majorities of Republicans, Democrats and independents.
More than 50 Alaska businesses have already signed, recognizing that retirement security helps with recruitment, retention and long-term workforce stability. Nationally, leaders across the political spectrum are acknowledging the retirement savings crisis and the urgent need to close the access gap. In April, President Trump signed anexpanding access to retirement savings for American workers. While it does not create a retirement savings program, it acknowledges the importance of the retirement savings crisis and the reality of the access gap.
States continue to lead with proven state-facilitated auto-enrollment IRA programs like Alaska Work and Save. Now it’s Alaska’s turn to expand access to retirement savings in a way that reflects our state’s values: independence, self-reliance and opportunity. The Legislature should pass SB 21, Alaska Work and Save, this session — and give every Alaska worker a chance at a secure retirement. Visithas served as advocacy director for AARP Alaska since 2020.
She is a former small-business owner and did not have access to a workplace retirement savings plan until her 30s. The Anchorage Daily News welcomes a broad range of viewpoints. To submit a piece for consideration, email
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