A Philadelphia councilwoman wants to establish a new way for city residents to save for their retirement.
A recent study shows most Philadelphians are not saving enough for retirement, said Councilwoman Cherelle Parker, and she’s proposing that a task force look into the possibility of a city supervised retirement savings plan.
“It will be my hope that there would eventually be some sort of product developed for all private-sector workers in the city of Philadelphia who do not have any type of program,” she said Thursday.
Social Security and IRA accounts are not enough, she said.
“Anyone can purchase a life insurance policy, anyone can begin saving now, but, unfortunately, when you are in your 20s, 30s, 40s, you think about the short term, the immediate income you are generating,” Parker said. “You don’t think about the future.”
On the other hand, Parker said, a formal retirement option might convince people to invest.