Posted by Nick Porcell
President Obama announced several new federal initiatives to promote retirement savings today. “I’ve heard from so many who’ve had to put off retirement, or come out of retirement, to make ends meet,” Obama said during his weekly radio address today. “And having too little in savings not only leaves people financially ill-prepared for retirement, but also for whatever challenges life brings.” Obama cited the approximately $2 trillion in retirement savings Americans have lost over the past 2 years.
The changes give employers an easier way to automatically enroll workers in retirement plans and the option to contribute compensation for unused vacation and sick days to 401(k)s, but doesn’t require companies to do so. Taxpayers will also get a new way to save their tax refunds. “Working Americans should be able to retire with dignity and security, but nearly half of the nation's workforce has little or nothing beyond Social Security benefits to get by on in old age,” said Treasury Secretary Tim Geithner in a statement. “The measures we are announcing today will give more choices to families who want to save.” Here is how the new retirement savings options could affect your retirement plans.
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I think that it is a good thing that the President is paying attention to this critical issue. However, in todays political climate the Obama administration may meet resistance if they try to introduce more federal guidelines for employers.
ReplyDeleteposted by Leah Gorham
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ReplyDeleteIt is great the administration is taking steps towards creating a solution for such an overbearing issue, like retirement. For many, their retirement plans were completely changed last year and it will be interesting to see if the steps the administration takes to try and resolve these issue are successful. At a time like this people look to the president for help and answers, and hopefully he is able to provide those who are looking to more adequately plan for retirement or retire in the near future with an answer that is to their liking.
ReplyDeletePosted by Jorden Meltz