A U.S. Department of Labor proposal to raise standards for workplace retirement-plan advisors could limit the Hispanic community's access to affordable advice, says U.S. Reps. Ruben Hinojosa and Tony Cardenas of Texas.
In a letter to Labor Department Secretary Thomas Perez, the congressmen say the plan could increase costs and prevent access to investment advice for low- and middle-income Hispanics.
“Low- and middle-income Hispanics have retirement plan savings that are almost 40 percent lower than other low- and middle-income individuals. In fact, only 38 percent of Latino employees age 25-64 have access to an employer-sponsored retirement plan,” the congressmen state in the letter.
While it is important that the proposed fiduciary rule protect retirement investors from misleading or harmful advice, Hinojosa and Cardenas said that it is equally important that low- and middle-income minority individuals have access to quality professional assistance regarding their retirement investments.