The Retirement Enhancement and Savings Act would modify some of the existing retirement tax incentives in ways that would improve access to retirement savings.
Financial insecurity can cause many hard-working savers to prematurely withdraw funds from their retirement accounts for unexpected needs.
The Senate Finance Committee hearing comes just months after BPC officially launched its Commission on Retirement Security and Personal Savings.
Defined Contribution accounts, such as 401(k)s and IRAs, make up a large and growing part of retirement security for those employed in the private sector.
Five of the foremost experts on different phases of the American retirement system met at BPC on July 30 in an attempt to outline the real state of workers’ preparedness for retirement. While the main theme of the panel was “heterogeneity,” meaning that every individual faces a different retirement challenge, they all agreed that “it’s a crisis for you if you’re not prepared.”
Many Americans, including those near retirement, have not saved enough. The Employee Benefit Research Institute finds that over 40 percent of Americans are at risk of running short of money for expenses in retirement. The combination of low saving rates, insufficient emergency funds, and increased responsibility for workers has left too many Americans without adequate savings for retirement to supplement their Social Security benefits.