LIVING YOUR BEST LIFE (AF TER 50)
We all know we should save for retirement early. But getting started can be challenging. Other states make it easy for workers to save money for a better future. Why isn’t Hawai‘i one of them?
10
AARP HAWAI‘I
I
illustration: getty images
The Secret to Financial Security
f you want to live your best life as you age, financial security is crucial. Those of us fortunate enough to have pensions and 401(k) plans have the means to achieve financial security. But about half of all private-sector workers—an estimated 216,000 people in Hawai‘i— cannot easily save for retirement through their workplaces. If workers haven’t saved, they face two stark choices: retiring into poverty or working until they die. Dennis Oda, former staff photographer at the Honolulu Star-Advertiser, began his career at a time when pensions were still relatively common and when his employer did away with its pension, he contributed to his 401(k) savings plan. “Everybody should prepare early and pay attention to your finances,” Oda says. His preparation allowed him to retire early when the paper asked for voluntary layoffs in June because of pandemic-related financial losses. That move helped save a co-worker’s job. Although the timing during COVID-19 wasn’t ideal, he says he’s doing OK because of his savings. If Oda had not had a way to save for retirement at work, his situation today would likely be much different. All of us would like to think that we will save enough money on our own to fund a comfortable retirement. But human nature and university studies suggest differently. Only 1 in 20 people will do the research and open individual retirement accounts on their own. The rest of us only save for retirement when it’s easy, when the money comes out of our paychecks before we get a chance to see and spend it. But for many businesses, especially small businesses, it’s just too expensive and time-consuming to offer workers a
