(Radio Iowa) – House Democrats are proposing a state directed investment option for Iowans who don’t have access to a retirement plan through their employer. Iowa businesses with five or more employees that don’t offer pensions or 401k’s would have to notify the state– and I-R-As would be set up for those employees. Workers could opt out and choose not to participate. Representative Austin Baethof Des Moines says 19 other states have launched similar program. “A very large percentage of our citizens are not financially prepared for retirement,” Baeth says. A recent survey found 19 percent of retired Iowans are relying solely on Social Security benefits.

“A mission of Iowa House Democrats is to see that every Iowan has the opportunity to realize their life’s full potential at every stage of their life,” Baeth says. “and it’s not right that so many of Iowa’s seniors who should be enjoying the fruits of their labor are instead just struggling to get by.” Baeth says he’s pushing for state action because research shows only half of Iowa workers have a retirement savings plan.

House Democrats at a news conference in the state capitol on Feb. 27, 2024. (RI photo)

“One third of Iowa’s private sector workers lack access to an employer-sponsored retirement savings plan,” Baeth says. “That’s an estimated 424,000 Iowans.” Republicans control the agenda in the Iowa House, but Democrats could offer this proposal as an amendment to bills Republicans bring up for debate. Baeth and other House Democrats say they’re looking for those opportunities.