PhillySaves is a practical way to help Philadelphia’s workers and small businesses plan for the future

Across Philadelphia, more than 200,000 workers go to their jobs every day without access to a workplace retirement savings option. These workers are disproportionately employed by small businesses that want to do right by their employees, but often lack the resources to offer a traditional pension or 401(k). The result is a growing retirement savings gap that affects individual workers, their families, and the financial health of the city.

PhillySaves offers a way to help close that gap.

The program — pending voter approval through a yes vote on Ballot Question No. 1 in the primary on May 19 — would give workers whose employers do not offer a retirement plan a simple, automatic way to save for the future through payroll deductions into an individual account they own and control. Participants could save as much or as little as they choose, change their contribution at any time, or opt out entirely. Importantly, the account will follow them if they change jobs.

Just as important: PhillySaves is designed to be small‑business friendly.

Research shows that many small businesses want to offer a retirement savings option, but find it too expensive and time-consuming. PhillySaves would address that challenge by providing an easy, low-cost way for small businesses to help their employees save and take control of their financial future. Access to a retirement savings option can also help small businesses attract and retain valuable employees.

That matters in a city where small businesses are the backbone of neighborhood economies.

The stakes for workers are high. Many older Philadelphians rely heavily on Social Security as their primary source of retirement income. But Social Security alone is often not enough to cover rising costs for housing, healthcare, utilities, and everyday necessities. Without additional savings, too many retirees are forced to make difficult choices and too often turn to taxpayer‑funded assistance programs to get by.

» READ MORE: Philly is poised to launch a retirement savings program for workers without 401(k)s

Helping workers save earlier and more consistently can change that trajectory. Research also shows that people are far more likely to save when they can do so automatically through their paycheck. Over time, even modest contributions can grow into meaningful security.

PhillySaves also reflects a broader shift happening across the country. States and cities — from Oregon to Missouri to New York — have adopted similar “auto-IRA” programs, recognizing that retirement insecurity isn’t just a personal challenge, but a public one with real economic consequences.

At the organization I lead, AARP Pennsylvania, our mission is to help people age with dignity, independence, and financial security. PhillySaves offers a commonsense, voluntary solution that works for workers, supports small businesses, and strengthens the local economy.

Philadelphia voters will decide the future of PhillySaves in Tuesday’s primary. As that decision approaches, we encourage residents to learn the facts, understand how the program would work, and consider what it could mean for the long‑term financial well‑being of the city. We believe Philadelphians should vote yes on Ballot Question No. 1.

Planning for the future shouldn’t be a luxury. PhillySaves is about making retirement security more attainable for everyone.

Bill Johnston-Walsh is the state director of AARP Pennsylvania.