National Association of Insurance and Financial Advisors

NAIFA Applauds Proposed Legislation to Bolster Americans’ Retirement Readiness

The bipartisan Secure Act would make it easier for small businesses to offer retirement benefits and give workers greater access to guaranteed streams of income for life.
NAIFA applauds bipartisan efforts by Congress to help Americans to save for retirement and ease the way for more employers to set up retirement plans for their employees. The Setting Every Community Up for Retirement Enhancement Act of 2019 (Secure Act) HR 1994 includes provisions from the Retirement Enhancement and Savings Act (RESA) previously introduced in the Senate, would result in more workers better preparing for retirement.
“Private-sector retirement plans are the best option for workers getting ready to meet their financial needs during retirement, and NAIFA applauds the efforts of Congress to promote plan participation and improve retirement preparedness,” said NAIFA CEO Kevin Mayeux. “Our members and their clients are particularly thrilled the Secure Act would ensure that retirement savers have adequate access to lifetime income products, such as annuities, that guarantee a stream of income for life and are a key component of many retirement readiness solutions.”
Key features of the legislation include:
  • Making it easier for companies to join multiple-employer retirement plans, and thereby benefit from cost savings and reduced administrative burdens
  • Providing tax credits for new plans of up to $500 for the first three years, and additional $500 credits for new and existing plans that provide an auto-enrollment feature
  • Making it easier for employers to offer lifetime income options among their plans’ investments
  • Providing portability of lifetime investment products for workers who change plans
“NAIFA has advocated for years in favor of retirement legislation with many of the provisions included in the Secure Act,” Mayeux said. “It has been a focus of our members’ meetings with lawmakers during our Congressional Conferences and days on the Hill that are part of NAIFA’s annual National Advocacy Meeting. We will continue to work with Congress and the administration to ensure Americans have the ability and incentives to invest in their retirement well-being.”
Retirement planning is a focus of NAIFA advisors, whose clients overwhelmingly include middle-income Americans. A recent survey found that more than eight out of ten NAIFA members provide retirement planning services for clients, and nearly half say that retirement planning is the single most important service they offer the majority of their clients.
According to the same survey, 83 percent of NAIFA members report that most of their clients have annual household incomes of $150,000 or less.
“Financial security during retirement is among the most critical issues facing Main Street Americans,” Mayeux said. “These families make up NAIFA members’ client base, and NAIFA’s advocacy efforts focus on helping advisors help Main Street consumers achieve financial security, attain their goals, and prosper.”
  • Posted April 2, 2019 IN
  • Comments (1)

One Global
This is welcome legislation in bipartisan fashion to help prepare for retirement. The more awareness and tools to help the better. Bravo!
4/8/2019 2:38:07 PM