Bipartisan Retirement Bill Excludes Social Security

Mar 7, 2022 / By Elaine Floyd, CFP®

Legislation aimed at helping Americans save for retirement is very popular in Congress—as long as it doesn’t address the thorny issue of Social Security solvency.

A new bill that has broad bipartisan support and appears close to passing would expand on 2019 legislation designed to help more people save for retirement. The current bill would require most employers with 401(k)-type plans to automatically enroll employees unless they opt out, sweeten tax credits for startup firms that offer workplace savings plans, promote a benefit for low-income savers, increase catch-up contributions for people in their 60s, and loosen rules to allow more annuity options. It would also raise the RMD age from 72 to 75.

As for reforming the Social Security system to ensure benefits won’t be cut in 2034 as projected in the latest Social Security trustees report? No mention in this legislation. Meanwhile, “Social Security 2100: A Sacred Trust” sits in the respective House and Senate committees. To see a recording of the House Social Security subcommittee hearing on “the fierce urgency of now” click here.

For more on the latest retirement legislation, see the full article.

As director of retirement and life planning for Horsesmouth, Elaine Floyd helps advisors better serve their clients by understanding the practical and technical aspects of retirement income planning. A former wirehouse broker, she earned her CFP designation in 1986.

 

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