As I See It – Colorado’s Treasurer Dave Young on Retirement Security, and more

Treasurer Dave Young, State of Colorado

It’s tough out there right now – so we wanted to hear from someone who is in the middle of the action. State Treasurer Dave Young brings a terrific blend of pragmatism, optimism and forward thinking to his role. You’ll see that the Colorado State Treasury is focused on relief and solutions during the COVID-19 crisis. But they are also looking ahead and strategically considering options that will put Colorado’s workforce on a path to better financial resilience post-pandemic.

We asked Treasurer Dave to share his thoughts on a couple of relevant topics. He also shared his latest look.

Tell us about your work on retirement security

I was raised here in Colorado by parents who grew up in the Great Depression. Early on they instilled in me the importance of savings over borrowing. I heard, “you should be earning interest, not paying interest.” It stuck with me. Fast forward: I believe that saving for retirement serves both the future and the present. I see it gets families on stronger footing from one generation to the next. Starting in July of last year I served as chair of the Colorado Secure Savings Plan Board studying our retirement security. After 9 months of research and deep conversations among the Board, its 9 members voted unanimously to recommend a state facilitated Auto IRA program paired with a statewide coordinated financial education campaign. Take a look at our report – it does a good job of showing why.

Did anything about what you learned surprise you?

I wasn’t surprised to learn we have a savings gap in Colorado – most states do. But I was surprised to learn how big a hit our budget is taking as a side-effect of insufficient saving. We call this “the cost of doing nothing.” Our analysis shows a cumulative fiscal impact to the state of almost $10 billion over the next 15 years. If you count the federal cost, the impact is more than $18 billion. That’s big. And it’s avoidable. We just need to create some easy interventions that help people save more, sooner.

How does the pandemic influence your thinking

COVID-19 and the resulting economic collapse have changed life quickly. One thing that’s still clear, maybe even more clear now, is that many Coloradans and our fellow Americans do not have access to sufficient savings or economic security. To me this highlights the need for more retirement savings, providing a cushion now while preparing for later. As many people have lost work and a sense of security in the past 8 weeks, we see how essential it is to have reserves in times of crisis. My hope is that a silver lining of this difficult time is a widespread understanding of the benefits of long-term savings.

What do you see as next steps for Colorado

The Secure Savings bill was introduced about a week before the legislature temporarily adjourned due to COVID-19. We plan to try to pass the bill when the legislature returns on May 18, because we think it really matters to our future security. We may have to be creative and try to pass the bill with a limited fiscal note. We are also very aware of the significant challenges that businesses are facing during the crisis and need the implementation timeline to reflect this reality. I believe in us and am very hopeful we can make this tool available to Coloradans to strengthen their futures.

Thank you, Treasurer Dave Young! We appreciate your insights and update.

Treasurer Dave sporting some state pride while showing us how it’s done.