Time is money, as we all know. That adage usually applies to wages earned for work, but it’s also very applicable as workers in high-cost Hawaii struggle to save for the future. Having money that’s saved during working years pay off in retirement is the goal.

That’s why there’s cautious optimism over Senate Bill 3289, which establishes a new Hawaii Retirement Savings Program. It would be a state-facilitated payroll-deduction retirement savings plan, offered to private-sector employees who don’t have access to any employer-sponsored retirement plans.

It’s an opt-in model, unfortunately, which means employees would not automatically be enrolled but would need to sign up. Ideally an opt-out model, which requires the worker to decide not to participate, would be most effective to help people save toward retirement. And they should, even if it’s but a small monthly amount. Let time work the investment for you.

Senate Bill 3289 rolls out the program in phases over a couple of years: First would come an implementation and evaluation study, followed by a strategy and timetable, then actual implementation. For 2022-2023, $1.25 million is allocated for the program’s launch to include hiring of an executive director and several staffers; $1 million for outreach and education on the retirement savings program; and $25 million into a special fund, so the state can match $500 for the first 50,000 employees participating n the program.

Employers should incur no costs — but they would be the conduit via payroll deduction for workers to access the retirement program, which will involve at least a Roth IRA.

The need and long-term value of this program are borne out in a bevy of stats. Among these: An October 2020 report, “Hawaii’s Generational Economy: Economic Impacts of Aging,” found that Hawaii’s elderly may face substantial challenges in meeting needs. Federal programs, such as Medicare and Social Security, are becoming difficult to sustain; and state and county governments may find it increasingly difficult to help.

Research also shows that elderly residents are expected to represent 24% of Hawaii’s population by 2040, and many are not financially prepared to retire. Those unprepared for retirement often end up needing public support.

Simply put, when people in their working years save for retirement, they are less likely to rely on public aid programs later in life.

Gov. David Ige is urged to sign this bill. Done well and with stringent oversight, this retirement program will pay dividends, quite literally, to many hard workers in their golden years.