NAIFA Sends Letters Supporting Lifetime Disclosure Act to Members of Congress

NAIFA supports the Lifetime Income Disclosure Act, which has been introduced into both houses of Congress. The legislation would ensure that retirement savers who participate in workplace retirement plans would receive “annuity equivalent” information in annual statements. This information would tell each worker how accumulated retirement savings would break down into estimated monthly payments over the course of his or her lifetime during retirement.
NAIFA has written letters of thanks to Reps. Luke Messer (R-IN) and Mark Pocan (D-WI) and Sens. Johnny Isakson (R-GA) and Chris Murphy (D-CT) who introduced the bills.
“The Social Security Administration already discloses benefits in terms of monthly income,” says a press release issued by Rep. Messer. “This bill creates a similar straightforward tool to help workers with employer-sponsored retirement plans determine if they are on track to meeting their retirement goals.”
Workers who saw their retirement savings broken down into monthly payments had a better idea of how much they needed to save for retirement and had higher confidence that they would be able to achieve their required retirement income level, according to a study by the National Bureau of Economic Research.
“Savers rely on NAIFA members to advise them on securing guaranteed income throughout retirement,” NAIFA Senior Vice President Diane Boyle wrote in the letters to the members of Congress. “The ongoing shift away from defined benefit pensions to defined contribution plans coupled with distressed entitlement programs makes the advice savers rely on more crucial than ever. [The proposed legislation] is an important educational tool that transforms the way savers view whether they have set aside enough by breaking down their lump sum balance into monthly disbursements.”
  • Posted June 1, 2015 IN

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