President Barack Obama has announced a new way for Americans to save for their retirement. In the president's State of the Union address, Obama announced that his administration is creating a new employer-sponsored savings account to help people save for retirement called MyRA.
Many people Channel 4 spoke with Thursday night in Jacksonville said they're not prepared for their retirement.
"Absolutely not," said Annie Stringfield. "I have no money saved. I live paycheck to paycheck."
"Not at all. I had one job where I had a 401k and didn't invest as much as I should," said Jonathan Sanders.
Obama is hoping that MyRA would change a lot of people's goals for saving.
The employee-sponsored program would allow workers to contribute $25 to as little as $5 through payroll deductions. Under the plan, married couples with incomes up to $191,000 and singles earning up to $129,000 will be able to save up to $15,000 total in after-tax dollars for up to 30 years.
Savers can keep the same account if they change jobs, similar to a 401k, or they can roll it over. Once an individual's MyRA reaches $15,000, or after 30 years, the balance will be rolled over to a private account.
"In the MyRA plan the only investment is government bonds, which generally has very low interest rates," said certified financial planner Titus Pittman. "So the question is, are the types of investments inside this plan enough to keep up with inflation and help the person earn money in addition to what they are saving?"
It's important to note employers will not be required to offer the MyRA plan. Employers can choose to participate in the pilot plan of this program by the end of this year.