Michelle Ezell EA LTC

Grants Pass, OR

Drink a Beer, Save for Retirement

October 6, 2024

When it comes to planning for the future, every little bit helps. In Oregon, there's a unique way to turn your everyday activities, like enjoying a beer, into a smart retirement strategy. Here's how the OregonSaves program and BottleDrop recycling can work together to help you build a more secure financial future.

What is OregonSaves?

The OregonSaves Retirement Savings Program is a pioneering initiative designed to help Oregon workers save for retirement. This program automatically enrolls employees into an individual retirement account (IRA) through payroll deductions, making it simple and seamless for anyone to start saving. Workers can also participate in OregonSaves on their own. Here are some key points about OregonSaves:

  • Easy Enrollment: Employees don’t need to do anything to enroll. Contributions are made through payroll deductions into an IRA that follows the saver throughout their career.
  • Universal Access: OregonSaves ensures that all Oregonians have access to a low-cost retirement savings program with professionally managed investments and oversight from a public board, chaired by the Oregon State Treasurer.
  • A National First: OregonSaves was the first program of its kind in the nation, addressing the needs of an estimated one million workers who lacked access to a work-based retirement plan.
  • State Law Requirement: Any Oregon employer that doesn’t already offer a workplace retirement savings option will be required by state law to either begin offering an option via the private market or provide their employees access to OregonSaves.
  • Flexibility: Workers can participate through their employer or independently. Savers can customize their savings elections, opt-out, or opt back in at any time without penalties. They can access their money and withdraw their contributions without tax or penalty at any time.
  • No Cost to Taxpayers: The program is operated solely through saver fees, with no cost paid by taxpayer revenue

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Since its inception, OregonSaves has enabled many first-time savers to collectively amass over $200 million towards their retirement, reducing the risk of poverty in old age and increasing financial security and independence.

 

Contribution Limits

Is there a limit to how much you can contribute? Yes, contribution limits for IRAs are set by the federal government. For 2024, you can save up to $7,000 per year if you’re younger than 50 and $8,000 per year if you’re 50 or older, as long as you have earned at least that much. If you are contributing to a Roth IRA, you also need to meet certain income levels based on your modified adjusted gross income (MAGI). This contribution limit applies across all IRAs you may have (both Traditional IRAs and Roth IRAs with the State and elsewhere).

 

Turning Recyclables into Retirement Savings

Now, let's talk about how you can use the funds from recycling your bottles and cans through BottleDrop to boost your retirement savings. BottleDrop has made it convenient to link your recycling efforts directly to your Oregon College Savings Plan (OCSP) account, which can serve as a component of your broader retirement strategy.

 

Here’s how you can set up automatic contributions from your BottleDrop account to your OCSP account:

  • Log in to Your BottleDrop Account: Start by accessing your account online.
  • Select Oregon College Savings Plan: On the account dashboard, choose the Oregon College Savings Plan option from the menu.
  • Manage Accounts: Click the Manage button beside the Connect and Manage Accounts section.
  • Add New Recipient: Click Add New Recipient and choose OCSP.
  • Enter Account Details: Provide your OCSP account number, account owner’s name, beneficiary’s name, and the monthly contribution amount (minimum $5.00).
  • Save Changes: Click Save Changes to finalize the setup.

 

By connecting your BottleDrop account to your OCSP account, you can regularly contribute the funds from your bottle and can returns towards your savings. Plus, multiple BottleDrop accounts can be linked to a single OCSP account, allowing friends and family to contribute as well.

 

For those who prefer flexibility, one-time transfers are also an option. After connecting your accounts, simply select the Transfer button next to One Time Transfer and choose the amount you wish to transfer.

 

Saving for retirement might seem daunting, but with the OregonSaves program and creative options like using BottleDrop, it can be easier than you think. So, the next time you enjoy a beer, remember that those empty cans can contribute to a more secure future. Here’s to a financially secure retirement!

Image by Christin Hume