A new report released today by our friends at Heartland Alliance’s Social IMPACT Research Center shares the barriers that many Illinoisans (especially low-income workers, women, immigrants and workers of color) face when it comes to saving for retirement. The report, Equitable Access to Secure Choice: Addressing the Barriers to Retirement Savings for Low-Income Workers in Illinois, also examines what must be addressed in order for Illinois’ new retirement savings program, Secure Choice, to be accessible to all eligible workers.

The report found that:

• Many low-income workers in Illinois are not able to save for retirement due to lack of employer-sponsored retirement options.
• Many low-income workers in Illinois struggle to save for retirement due to lack of funds or appropriate financial planning support.
• The need for emergency savings accounts is just as high as the need for retirement savings accounts.
• Secure Choice has promising features that speak directly to the needs of low-income workers in Illinois.

Equitable Access to Secure Choice also provides considerations that would help make the Secure Choice program accessible for Illinois families.

Secure Choice Implementation Considerations:

• Make program features clear.
• Limit the number of investment options and provide guidance on the differences between existing options.
• Take advantage of tax season.
• Include portability discussions in exit interviews.

Financial Planning Considerations:

• Address lack of financial planning supports.
• Refer workers to vetted institutions that can assist with emergency savings accounts.
• Remind workers about portability.
• Provide demonstrations on how to navigate the online site for Secure Choice.

Messaging Considerations:

• All messaging needs to be written at an accessible reading level.
• Clarify stakeholder roles.
• Define ‘meaningful information’ for monthly statement content.

Read the full report to learn more about Secure Choice and equitable access to retirement savings.

Join the Social IMPACT Research Center for a Webinar

The Social IMPACT Research Center will be hosting a webinar about the report on December 5^th from 1 PM to 2 PM CT. Register here to join the discussion and to hear from the report author and the State Treasurer’s Office as they discuss the findings and the Secure Choice program.

Last night, with a vote of 98-16, the Illinois House voted to override the Governor’s veto of SB1351, the Student Loan Bill of Rights! The law, which goes into effect at the end of 2018, protects thousands of Illinois students seeking an education.

“We applaud the Illinois General Assembly for overriding the Governor’s veto and supporting Illinois students and their families. By passing the Student Loan Bill of Rights, Illinois has taken meaningful action to address the growing student loan crisis, rein in the abuses of student loan servicers, and help borrowers successfully repay their loans and build financial security,” says Jody Blaylock, Senior Policy Associate at Heartland Alliance. “Students of color are disproportionately affected by the student loan crisis, making this law an important step towards greater racial equity in Illinois.”

We are grateful to the Illinois Attorney General’s Office, Senator Biss, and Representative Guzzardi for their leadership on the bill and their commitment to strong consumer protections for student loan borrowers.

The protections under the new law are aimed at stopping the abuses of the student loan servicing industry that make it more difficult for borrowers to repay their loans. The Student Loan Bill of Rights ensures that students receive accurate billing statements, timely notification about payment plan deadlines, information about all of the repayment options available to them, and more. The bill also provides oversight and licensing of loan servicers in Illinois and establishes a Student Loan Ombudsman as a resource for borrowers.

Thank you to the dedicated legislators, amazing advocacy partners, and to everyone who contacted their legislator about this bill.

These new protections go into effect on December 31, 2018. As that time gets closer, we will share information for borrowers about their rights under the new law, so stay tuned!