Indiana A&O Network Urges Study of Retirement Savings and Financial Stability for Hoosiers

For Immediate Release

May 2, 2022

Contact: Andrew Bradley | (317) 222-1221 x403| abradley@prosperityindiana.org

Indiana A&O Network Urges Study of Retirement Savings and Financial Stability for Hoosiers

Indianapolis, IN – In a letter signed by 30 organizations and individuals, members of the Indiana Assets & Opportunity Network and other stakeholders are urging the Indiana House Speaker Todd Huston, Senate President Pro Tempore Rod Bray, and Members of the Legislative Council to conduct an interim study to promote financially responsible retirement savings as part of a statewide financial literacy strategy by (1) studying how the State of Indiana may reduce the regulatory and operational burden on small businesses to promote payroll deduction as a retirement savings option for employees; (2) studying the preparedness of Hoosiers to retire in a financially secure manner; and (3) studying the need for a statewide financial literacy strategy as included in H.R. 37, authored by Rep. VanNatter.

Across our state, approximately 1.1 million Hoosiers, representing more than 47.7 percent of the state’s private sector workforce, lack access to a retirement program at work. With that being said, studies show that employees are fifteen times more likely to save for retirement when they have access to workplace savings plans.

Furthermore, according to the Prosperity Now Scorecard, Indiana ranks 36th for the prosperity of its residents when compared to the 50 states. The scorecard finds that nearly 4 in 10 Hoosier households do not have money set aside for unexpected expenses and emergencies. Furthermore, Indiana ranks 49th among 50 states for the percentage of households that reported falling behind on bill payments in the past 12 months, including 14.7 percent of white households and 32.5 percent of households of color who are behind on bills.

These outcomes and metrics are among the reasons why many stakeholders throughout the state, including members of the Indiana Assets & Opportunities Network, have been working to advance this issue for several years now and it is our hope that the conversation will continue in the months ahead via the interim study to promote financially responsible retirement savings as part of a statewide financial literacy strategy.

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About the Indiana Assets & Opportunity Network

The Network creates learning opportunities for community leaders, advocates on policies that affect low-to-moderate income families, and builds capacity for organizations aimed to increase financial stability. It is co-led by Prosperity Indiana which is a member organization skilled at building vibrant communities and resilient families; and the Indiana Community Action Poverty Institute (ICAP) which is a program of the Indiana Community Action Association, skilled in research, policy analysis, and advocacy. The Network is directed by a diverse steering committee to help establish program and policy focus. They meet bi-monthly to help identify funding sources, opportunities, and coalition partners.