ALPHARETTA, Ga. _ Malcolm Reid and Stewart Nelson-Reid, both 58, have been together for 18 years. They've had a blast _ traveling, skydiving and riding roller coasters around the country.
What they haven't done is save much money for retirement. For years Malcolm Reid, a manager at AT&T, contributed only a small amount to his 401(k). His spouse, a freelance makeup artist, has no retirement fund.
"I don't know what we were thinking," Reid said. "We were spending money like crazy. We traveled. We bought clothes. We ran up credit card debt. Now, we're watching every penny."
They aren't alone: A recent federal report found about 55 percent of households with workers between 55 and 64 have less than $25,000 in retirement savings. Malcolm Reid has saved a bit more than that _ $38,000 _ but far less than what he'd need to support himself during a retirement that might last decades.
For many Americans, a major barrier to saving more is that their employers don't offer a retirement plan. Between 2010 and 2014, 42 percent of full-time, private sector workers between 18 and 64 _ about 30 million people _ did not have access to an employer-sponsored plan, according to a study by the Pew Charitable Trusts (Pew also funds Stateline).
To fill the gap, since 2012 at least 31 states have considered setting up state-sponsored retirement savings plans for private sector workers, according to Pew. This year, legislators in more than a dozen states introduced bills.
Seven states have approved state-sponsored retirement programs for private-sector workers. In Massachusetts, the treasurer would handle contributions and investments for the voluntary program, which would be only for small nonprofits.
Connecticut, Illinois, Maryland and Oregon have approved mandatory programs in which a small percentage would be automatically deducted from an employee's paycheck and put in an IRA in a financial institution, although the person could opt out. Employers would play a minimal role, providing information about the program to workers and sending payroll deductions to the state, but not offering financial advice or assistance. None of the programs require employers to match employee contributions.
Under Maryland's program, employers that don't enroll their employees must pay a standard $300 filing fee. But there is no penalty for failing to participate in the program.
New Jersey and Washington state have adopted a "marketplace" model, in which the states would create an online exchange and set basic standards for eligible retirement plans.
The states would rely on the existing private market to provide the plans, as well as help educate small businesses about their options and encourage them to offer one to employees. Participation would be voluntary for small businesses and employees.
In Illinois, which hopes to launch its program in June 2017, businesses with at least 25 employees that don't offer retirement plans would be required to participate. Employees would be enrolled unless they opt out, and 3 percent of their wages would be placed in a Roth IRA, although they could change the percentage.
"Workers who lack access to retirement savings options need and deserve help. The number of families and workers who are in trouble is just terrifying," said Democratic state Sen. Daniel Biss, who sponsored the measure, which passed in 2014 on a party-line vote, with only one Republican voting in favor.
AARP, one of the biggest boosters of state-sponsored retirement funds, says auto-enroll programs like the one in Illinois will best help retirees become more financially secure.
"Social Security is not enough. People need that private savings," said Gerri Madrid-Davis, AARP's state advocacy director. The average monthly Social Security retirement benefit as of January was $1,341.
