Mayor Cherelle L. Parker signed two bills establishing the Philadelphia Retirement Savings Program, known as PhillySaves, into law this week. PhillySaves is a new initiative aimed at helping workers without access to employer-sponsored retirement plans to build long-term financial security.
Bills #250950, 250651-A, and Resolution #250970-A were approved in December 2025. They were sponsored by City Council President Kenyatta Johnson (2nd District) and co-sponsored by City Councilmember Mike Driscoll (6th District). Mayor Parker has long advocated for retirement security for workers.
While state-level auto-IRA programs exist, Philadelphia would be the first U.S. city to create its own version, specifically targeting workers whose employers do not offer plans. Across the country, 17 states have established similar auto-IRA plans. As of December 2025, 12 of these programs had accumulated nearly $2.7 billion in savings, involving more than one million participants and 260,000 employers, according to Pew Charitable Trusts.
“This is an issue that I have cared about deeply and worked on with many other stakeholders for 10 years. It is a very big deal for the City of Philadelphia, and for our residents because it can reduce future strain on social services,” said Mayor Cherelle L. Parker. “The difference between aging with dignity and in panic lies with having retirement security that can lessen financial hardship. I am grateful for the work Council President Kenyatta Johnson, Council Member Mike Driscoll, John Scott with Pew Charitable Trusts and the AARP Pennsylvania team did in spearheading this initiative because it takes a collective effort. This is a very good day for Philadelphia workers.”
To make PhillySaves happen, Philadelphia voters would need to vote yes on a ballot question in the next Pennsylvania Primary on May 19 that would establish the Philadelphia Retirement Savings Board to oversee the program.
“Thank you to members of the Philadelphia City Council for approving the Automatic Individual Retirement Account legislation, also known as PhillySaves, and to Mayor Cherelle L. Parker for supporting this important legislation,” said City Council President Kenyatta Johnson. “Philadelphia needs PhillySaves, as over 200,000 private sector workers in the city do not have access to a retirement savings program at work. PhillySaves is a long-term solution to reducing the retirement savings gap and ensuring that our residents can retire comfortably and with dignity. I urge all Philadelphians to vote ‘yes’ during the May 19 Pennsylvania primary election on the local ballot question to make PhillySaves a reality.”
“Is it too much for us to ask our senior citizens to retire with dignity?” said City Councilmember Mike Driscoll (6th District). “I don’t think so. I can’t tell you what a milestone today is, and I’ll certainly be voting yes on the ballot question and supporting this initiative. I could not be more thrilled for all of our work together with Mayor Parker and President Johnson on this issue.”
The PhillySaves program will automatically enroll eligible employees to contribute a portion of their wages—between three and six percent—into an Automatic Individual Retirement Account (Auto-IRA). Workers can choose to opt out or change their contributions at any time.
The program would be overseen by a nine-member board, with four members appointed by the mayor, four by the Council President, and one member selected by the City Controller.
To participate, employees must work for Philadelphia businesses that have been operating for at least two years and do not currently offer retirement benefits. Sole proprietors and self-employed individuals are excluded at this time, although the board may consider extending coverage to these groups in the future.
The initiative comes amid stark statistics showing that many Philadelphia residents enter retirement with little or no savings. A Pew Charitable Trusts report found that 35 percent of residents over 65 in Philadelphia live on about $15,000 annually, while households with retirement income have a median income of nearly $58,000.
“PhillySaves would benefit Philadelphia’s workers, its businesses, and its taxpayers,” said John Scott, The Pew Charitable Trusts, Retirement Savings Project Director. “Philadelphia’s businesses would, at no cost to them, be able to attract and retain workers by offering a retirement savings plan. And taxpayers would also benefit, because the more people save for retirement, the less they will need to rely on social assistance programs in the future.”
“Pew applauds Council President Kenyatta Johnson and Councilmember Michael Driscoll for shepherding this legislation as well as Mayor Cherelle Parker for her leadership and support,” Scott added.
Among the groups and individuals supporting PhillySaves are AARP Pennsylvania, The Pew Charitable Trusts, The Chamber of Commerce for Greater Philadelphia, Northeast Philadelphia Small Business Alliance, Philadelphia City Council, Mayor Cherelle L. Parker, and Tiffany Chavous, CEO of Somerset Academy Early Learning Center, representing early childhood providers.
“As a nonprofit, nonpartisan organization dedicated to empowering Americans 50-plus to choose how they live as they age, AARP is committed to supporting policies that help people achieve financial security — whether they are nearing retirement, currently retired, or decades away,” said Bill Johnston-Walsh, State Director, AARP Pennsylvania. “Expanding access to retirement savings options is central to this commitment. That’s why we support PhillySaves. This program will create a clearer path to retirement security by seizing a once-in-a-generation opportunity to help Philadelphians build financial stability and greater confidence in their future. We are grateful for the leadership of Mayor Parker, Council President Johnson and Councilmember Driscoll for this achievement.”
“PhillySaves is an amazing step forward and gives workers a simple, automatic, no cost way to begin building financial security,” said Tiffany Chavous, CEO, Somerset Academy Early Learning Center. “It removes barriers that have historically kept many people from accessing retirement savings. PhillySaves will strengthen the people who strengthen our city. Financial security is part of the foundation that allows families, neighborhoods and communities to thrive. “
Attending the bill signing with Mayor Parker were Council President Johnson, Councilmember Driscoll, and Councilmember Jim Harrity (At-Large), Chair of City Council’s Labor Committee; Chavous and the leadership of The Pew Charitable Trusts and AARP Pennsylvania.
