Retirement savings for IHSS providers

June 23, 2016

lisa adele

When Madera County caregiver Cynthia Wilson’s IHSS paycheck didn’t arrive on time in January, she and her grandson lost their apartment.

Thankfully, they were able to turn to friends and neighbors for help, but since then she has been terrified that another late paycheck or unexpected expense could leave her homeless again. And that worry increases exponentially when Cynthia thinks about retirement, because like many IHSS providers, Cynthia has no retirement benefits or savings.

IHSS provider Cynthia Wilson from Madera County

IHSS provider Cynthia Wilson from Madera County

“I’m 62,” said Cynthia. “If I work until I’m 70, I might get about $1,200 a month from Social Security, but that’s not set in stone either.”

Cynthia shares a worry that many UDW caregivers who are eligible to pay into social security can understand: will it be enough when we retire? “I’m scared that it won’t be, and my grandson and I could end up homeless again,” she said. I’m raising him now, so whatever affects me affects him. If I can’t buy food, he can’t eat. If I can’t pay the electricity bill, he sits in the dark with me.”

If passed by the state legislature and signed into law by the governor, Senate Bill 1234 would implement the California Secure Choice Retirement Savings Program on January 1, 2017. This program would provide workers – including all IHSS providers once it’s determined to be legally permissible under state and federal laws- with the opportunity to contribute a small percentage of their wages towards their own retirement savings account.  There will be no employer match but this is an important first step toward easing some of the worries about the future that caregivers like Cynthia live with every day. And IHSS providers are not alone: about 7.5 million workers in California lack access to a retirement savings program, and three out of five families with a head-of-household that is 65 or older have no retirement money saved.

“Being able to actually put money aside for retirement would give me a little extra,” said Cynthia. “I don’t want to have to rely on food stamps and other public assistance. I want to feel secure, and at least able to take care of my basic needs.”

Kady Crick, an IHSS provider from Riverside County, echoed Cynthia’s feelings. “I’ll be 61 this year. I want to know I have a cushion besides Social Security when I retire,” she said. “This program would give my husband and me more comfort for the future, because Social Security may not be enough.”

IHSS provider Kady Crick from Riverside County

IHSS provider Kady Crick from Riverside County

SB 1234 currently includes IHSS providers, and if we are determined to be eligible for the program, the California Secure Choice Retirement Savings Program will help IHSS caregivers take control of our financial future, so we can retire with dignity.

Look out for more updates on SB 1234’s progress on www.udwa.org and www.facebook.com/UDW.

And we’re still working to secure basic retirement benefits like Social Security and Medicare for parent and spouse IHSS providers. Read more here: http://www.udwa.org/2016/05/help-caregivers-win-social-security-medicare/.

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