“A cut to retirement savings incentives in order to ‘pay for’ unrelated tax cuts would be a serious policy mistake,” says Putnam Investments CEO.

Robert L. Reynolds, CEO of Putnam and Great-West Financial, came out swinging this morning about one idea being floated to finance Trump Administration proposed tax cuts -- eliminate, cut or discourage tax-deferred contributions to 401(k) and other retirement plans. Reynolds has been publicly promoting his ideas to improve retirement savings.

“Congress must not sacrifice the savings individuals will need for tomorrow to fund today’s budget," said Reynolds in a prepared release. "We should, in fact, strengthen and expand incentives for retirement savings as part of any national tax reform.”
 
President Trump is expected to unveiled his tax proposals in a speech today. Meanwhile, popular deductions with middle-class and affluent Americans may be reduced or cut to finance tax cuts.

Reynolds, who recently authored a book, From Here to Security: How Workplace Savings Can Keep America’s Promise, is supporting policies that increase workplace savings and make it easier for more Americans to have access to retirement savings plans.

The nation holds some $26 trillion in retirement assets, yet tens of millions of U.S. citizens lack access to on-the-job savings plans, Reynolds said. He said policy fixes that make multi-employer plans easier to set up and administer could go a long way to expanding plan access. In addition, Reynolds pointed out that the long-term solvency of Social Security is essential, as the program serves as the foundation for all Americans’ retirement security.