Earlier this month, Secretary of Treasury Jack Lew announced the launch of myRA (my Retirement Account) a simple, safe and affordable new savings option for those who don’t have access to a retirement savings plan at work.
“myRA is designed to remove common barriers to saving, and give people an easy way to get started,” said U.S. Treasury Secretary Jacob J. Lew. “myRA has no fees, no risk of losing money and no minimum balance or contribution requirements… myRA can give people confidence that they’re taking steps in the right direction, and it can serve as a bridge to other savings options that will carry them the rest of the way. myRA alone will not solve the nation’s retirement savings gap, but it will be an important stepping stone for encouraging and creating a nation of savers.”
With the launch of the myRA website, myRA.gov, US residents were given access to this starter retirement account program which helps to jump start good retirement saving habits amount younger, working class and part-time workers. However upon launch of the program Senator Michael F.Q. San Nicolas found that while the 50 states, the District of Columbia and Puerto Rico were included in the drop down menu for myRA sign up, Guam was not included preventing Guam residents from participating in the program.
San Nicolas, through the help of Congresswoman Madeleine Bordallo, reached out to the Department of Treasury about allowing Guam residents to enroll in myRA like every other US resident. The U.S. Treasury Department confirmed that the exclusion of Guam was a technical error and Guam residents are eligible for the myRA program. Corrections to the myRA website will be in the next round of technical fixes to the website.
“myRA is a Roth IRA with no minimum deposit, no cost or fees, and a guaranteed positive rate of return backed the U.S. Treasury Department. This new savings tool will help young people, our working class and our part-time workers get started with retirement savings to ensure their retirement security in the future. I am grateful for the help of Congresswoman Madeleine Bordallo in ensuring Guam residents can participate in this new federal program,”said San Nicolas.
In a 2015 Federal Reserve Report, 31% of non-retired people said they had no retirement savings or pension whatsoever. A 2013 report by the National Institute for Retirement Savings found that 42% of those without any retirement savings said it was because it was not offered by their employer. 62% of part-time employees nationally do not have access to a retirement plan at work. Nearly 20% of the Guam workforce is part-time.