Connecticut state Comptroller Natalie Braswell announced the launch of MyCTSavings, a new retirement savings option for the more than 600,000 Connecticut private-sector workers who aren’t offered a plan through their employer. The program is sponsored by the Connecticut Retirement Security Authority, of which Comptroller Braswell serves as Chair. The Board selected Vestwell as the program’s third-party administrator after a competitive bidding process.
With Connecticut’s retirement market likely to expand as MyCTSavings is rolled out, many are asking “What does this program mean for advisors in Connecticut?” or more broadly, “What do state programs mean for advisors, in general?”
To date, 14 states have launched or committed to their own programs, while 20 additional states have introduced similar legislation for debate. These state programs have the largest impact on the small plan market, which has historically been underserved by the retirement industry. Explore what MyCTSavings and state programs like it may mean for your business:
Earlier this Spring, registration for MyCTSavings opened for any Connecticut business with five or more employees –at least five of whom have been paid more than $5,000 in the calendar year and who don’t offer a qualified retirement plan. The registration deadline for employers with 100 or more employees is coming up on June 30, 2022.
Once a business is enrolled, their employees who meet the eligibility requirements will have access to a Roth IRA and can choose to stick with the program defaults or customize their account. They can also choose to opt out at any time.
State programs are helping employers of all sizes to think about how they can provide a retirement savings option for their employees. According to a recent Morgan Stanley at Work study, 95% of HR executives said “reevaluation of their financial benefits package” is a priority for next year. As a result, advisors can help their clients understand the best benefits program for their business, whether it be a state IRA or a traditional 401(k). Small businesses in Connecticut now have more of an incentive to offer a retirement plan than ever before.
When CalSavers’ deadlines first approached, California-based advisors found some small business owners in need of help sorting out their options. Nick Pennino, an Edward Jones advisor based in the state, told FinancialPlanning “The rollout of this plan has acted as a tipping point.” With over 600,000 Connecticut employees gaining access to a retirement program, advisors may see growing interest from small businesses across the state.
States like Connecticut have chosen to partner with Vestwell because our modern, cloud-based digital platform makes it simple for states and advisors to help the small businesses they serve onboard and process payroll with ease, while also giving employees the modern and user-friendly experience they’re accustomed to.
To capture the growing market of small business retirement planning, advisors need a platform that can meet the needs of their business. Scale your practice, customize your offering, delight your clients, and give them the experience they deserve with the only recordkeeping service built for advisors.