Philadelphia Mayor Cherelle Parker approved new legislation establishing the Philadelphia Retirement Savings Program, known as Philly Saves, an initiative created to help workers build long-term financial security, especially those who do not have access to employer-sponsored retirement plans.

The bill signing took place on January 20 during a press conference at City Hall alongside City Council President Kenyatta Johnson, who championed the initiative, as well as community partners and organizations. The program aims to address an urgent need affecting thousands of working families across the city.

A response to economic inequality

Currently, nearly one in five Philadelphia residents lives in poverty, and 35 percent of older adults live below or near the poverty line. In addition, approximately 208,000 private-sector workers, nearly one-third of the workforce, do not have access to a retirement plan through their workplace.

“Too many workers in Philadelphia have spent their entire working lives without a simple way to save for retirement,” said City Council President Kenyatta Johnson. “Philly Saves is a practical tool that will help close that gap and provide greater economic stability for our communities.”

Johnson emphasized that the program is designed to especially benefit workers at small businesses and those in communities that have historically been excluded from traditional employment benefits.

How Philly Saves will work

The program will apply to businesses with at least one employee that have operated in Philadelphia for 24 months or more, provided they do not already offer a retirement plan. Employees will be automatically enrolled at a contribution rate between 3 percent and 6 percent of their wages, though they may opt out or adjust their contributions at any time.

Savings will be deposited into personal IRA accounts, allowing each worker to maintain control of their money and keep their account even if they change jobs. “This program not only helps workers plan for their future, but it also strengthens the city as a whole,” Johnson noted. “Reducing poverty among older adults and promoting savings is an investment in a stronger, fairer, and more resilient Philadelphia.”

With Philly Saves, the city takes a significant step toward expanding economic opportunity, promoting financial security, and building a more stable future for thousands of working families in Philadelphia. For more information, visit www.phila.gov.