Congress is already focusing this year on the need to act on retirement. The Retirement Enhancement and Savings Act (RESA), which has been introduced in the House, would make it easier and financially viable for small employers to join together to offer their workers 401(k)s or similar plans. RESA also would make it easier for employers to offer annuities in their retirement plans.
RESA garnered bipartisan support and momentum during the last Congress. Neely said ACLI strongly supports passage again this year.
Americans are living longer than ever before, but many have not saved enough to sustain them in retirements that could last 30 years or longer. A recent Northwestern Mutual study found that a third of Baby Boomers currently in, or approaching, retirement age have between $0 and $25,000 set aside.
“Too many workers are ill-prepared to be financially secure in retirement,” Neely said.