PhillySaves: A Path to a Secure Retirement

Earlier this year, Philadelphia Mayor Cherelle Parker signed into law two bills to establish PhillySaves – a retirement savings program designed to provide an automated savings option for the city’s estimated 208,000 private-sector workers whose employers cannot offer retirement benefits.  Under the legislation, the program may begin operating after voters approve the creation of an independent governing board through a May 19^th primary election day ballot question.   

AARP knows that Americans are 15 times more likely to save for retirement if they have a savings account at work, and 20 times more likely if that savings is automatic. 

PhillySaves would allow workers to save as much or as little as they want in their accounts through automatic deductions from their paychecks and take it with them if they change jobs. 

When employees have the tools to save, they build a stronger future for themselves and their families. It’s time to ensure workers in Philadelphia have a path to a secure retirement. 

Without retirement savings accounts, hard-working Philadelphians will count on Social Security even more for financial security. However, Social Security alone is not enough for them to depend on as a sole source of retirement income. 

The average Social Security income for a 65+ Philadelphia family is about $21,000 per year. 

Many older homeowners are cost-burdened – paying approximately $25,000 for utilities, health care, housing and maintenance. 

That’s why AARP is advocating for PhillySaves. 

Building a Stronger Future for Philadelphia Workers

Only 48 percent of all Philadelphia workers ages 25-64 had access to an employer sponsored retirement savings plan, compared with 53 percent of workers nationwide. 

A June 2025 Pew issue brief revealed that the median income for older households (65+) in Philadelphia was $51,000, lower than the national median of $56,000. Additionally, only 47% of older Philadelphians received retirement income (such as from 401(k)s and pensions), compared to 58% nationwide. 

What is a Public-Private Retirement Savings Partnership?

A public-private retirement savings partnership is a commonsense, voluntary, workplace-based solution that helps workers save for retirement and build long-term financial security – without increasing reliance on public assistance.  

With voter approval of a May 19 ballot question, an independent retirement savings board would be created to establish and oversee the PhillySaves program, which would be professionally managed by a third-party financial firm selected by the board. 

Employers could enroll employees at no cost, while workers would own their accounts, choose how much to save through payroll deductions, and take their savings with them from job to job. Participation is voluntary for employees.  

Promoting Fiscal Responsibility

PhillySaves would require no ongoing costs for Philadelphia: A public-private retirement savings program will be self-sustaining, and participant-funded. The funds cannot be commingled with public pension dollars, nor can they add to Philadelphia’s public pension liability. 

Saving Taxpayer Dollars: It also saves the state money. Providing a way for workers to save on the job reduces reliance on taxpayer-funded assistance programs in retirement - and decreases the financial burden on government. 

Small business friendly: Programs like PhillySaves – also known as auto-IRAs, Work and Save, or Secure Choice – help small businesses recruit and retain workers by offering a no-cost retirement savings benefit. When workers are more financially secure, they are better able to weather financial shocks and more likely to save for their future. 

Learn More: If you are a small business owner and are interested in learning more and working with AARP, fill out the form below today and we will be in touch!   

Form for Philly Small Business Owners