Florida must act now to secure workers’ retirement futures

For at least three quarters of a century, Florida has been the dream for many Americans as they plan to retire.

Every day, the Sunshine State gains hundreds of new residents from other parts of the country who have wrapped up their primary careers and are setting sail on a new phase of their lives. These new Floridians not only buoy our economy through their stable consumption patterns but also support our state through their tax dollars, volunteer service, civic engagement, and philanthropy. Many, in fact, become restless after a few months of rest and start new businesses or rejoin the workforce here.

In recent decades, as more people realize that Florida is not only a retirement destination but a dynamic and vibrant place to raise a family and build a career, a new question is emerging: Can Floridians afford to retire in their home state?

The answer depends on many factors, from housing costs to health care. But one of the most important drivers of retirement security deserves more attention: the ability to save for retirement while working.

Many Floridians are fortunate to have access to a traditional pension or a workplace retirement plan such as a 401(k) or 403(b), which allows workers to save automatically through payroll deduction. Yet that opportunity is far from universal. In fact, 59% of Florida’s private sector workforce, nearly 5 million people, work for an employer that offers neither a pension nor a retirement savings plan.

This gap is not due to any lack of good intentions. Florida’s economy is powered by small businesses, and many employers simply lack the time, resources, or expertise to offer retirement benefits even when they want to. As a result, millions of hardworking Floridians are left to save on their own, without the convenience, structure, or incentives that enable many Americans to save for the long term.

Helping workers save for retirement is not only good for individuals, but it also strengthens our entire state. Workers with access to payroll deduction retirement plans are significantly more likely to save. Small businesses gain a competitive edge when they can offer benefits that attract and retain talent. And taxpayers benefit when future retirees are better prepared to support themselves rather than relying heavily on safety-net programs.

The challenge before Florida is clear: how do we expand access to retirement savings without new taxes, burdensome mandates, or one-size-fits-all solutions?

That is exactly why Florida Senate Bill 930 and House Bill 1357 deserve broad, bipartisan support.

While these bills don’t create a program overnight, they create a Florida Retirement Savings Task Force within the Department of Commerce, bringing together experts in finance, labor economics, retirement policy, small business, workforce development, and consumer advocacy. The task force’s charge is simple and sensible: study the retirement savings coverage gaps in Florida, examine proven models from other states and the private sector, identify barriers, and develop thoughtful, data-driven recommendations.

Importantly, this effort is temporary, transparent, and non-binding. The task force has no authority to impose new mandates or costs on workers or employers. Members serve without compensation. In other words, SB 930 and HB 1357 represent good governance: gather facts, listen to stakeholders, understand fiscal impacts, and recommend informed decisions for Florida’s future.

Florida’s reputation as a great place to retire was built on generations of economic opportunity and careful stewardship. Ensuring that today’s workers can build their own retirement security is essential if we want that reputation to endure. As vehicles to begin the process to facilitate a clear path to long-term financial security for all Floridians, SB 930 and HB 1357 are worth supporting.

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Jeff Johnson is the AARP Florida State Director.