How does the MarylandSaves program work?

MarylandSaves is a simple, safe, easy way for you to save for emergencies and retirement. For most people, their employer will register for the program and give MarylandSaves your contact information. We then contact you, tell you about the program, and offer you the chance to customize your savings or opt out and not participate at all.

You don’t have to do anything: if you don’t, starting in a month you will automatically start saving 5% of pay and the money will go into your personal WorkLife Savings Account. You can change your savings rate, withdraw your money, change investment options, or quit the program entirely at any time. Your employer signs you up, but everything about the program is totally under your control.

If you are self-employed, you can sign yourself up by clicking here.

Because most people don’t have the time or knowledge to choose investments or estimate their retirement needs, MarylandSaves has a standard (“default”) set of options. They have been chosen to work for most people and most people don’t change them. Here are the main features – but you can change any of them at any time:

• 5% of gross pay will be saved from each paycheck in the first year. This will increase by 1% in the following year and each year thereafter, up to a maximum of 10%.

• Your money will go first into an Emergency Savings Fund, so you have money when you need it for health problems, car repairs, or whatever. Once that account reaches $1,000, additional contributions will go into a specially designed retirement fund based on your age. These “target date funds” change their investments as you get closer to retirement age.