New York State Expands Automatic Retirement Savings Program Statewide
New York State’s Secure Choice Savings Program, offering a retirement savings option to private-sector employees without workplace plans, expanded statewide today, October 9, 2025, following a successful initial rollout.
The program, announced yesterday by Governor Kathy Hochul, mandates employer deductions of at least 3% of an employee’s gross pay into a Roth Individual Retirement Account, though employers can seek an exemption and employees can opt out. Contributions are made after income taxes and are capped at $7,000 annually for those under 50 and $8,000 for those 50 and over, in line with IRS guidelines. This expansion addresses a critical gap in retirement security for millions of New Yorkers.
Employers with 10 or more employees, in business for at least two years, and without existing qualified retirement plans like 401(k)s are required to participate. Employees can select investment options including funds from BlackRock and State Street, and are charged fees ranging from 22 to 31 cents per $100 invested, plus a $28 annual fee. “The program provides another tool for employees to build long-term financial security and plan for a dignified retirement,” Governor Hochul stated. More details are available at newyorksecurechoice.com.
Matt Cohen, president and CEO of the Long Island Association, noted the program “will ultimately boost economic activity” on Long Island, while Assemblyman Al Stirpe expressed his enthusiasm for the program’s “launch from idea to implementation.” Officials stated the automatic payroll deductions will help more New Yorkers save for the future.
