According to the Federal Reserve, many adults struggle to save for retirement, and less than two-fifths feel that they are on track with their savings. Generally, preparedness for retirement increases with age, but concerns about inadequate savings are still common for those near retirement age. Congress is considering ways to address these concerns and it begins with the SECURE Act (The Setting Every Community Up for Retirement Enhancement Act).
The SECURE Act is designed to help more people save for retirement.
Research has shown that one of the most effective ways to get people to save is through access to a workplace retirement plan. This potential new legislation would remove some of the barriers preventing millions of Americans from having access to such plans. The bill recently gained traction with bipartisan approval in the House, 417-3 vote and now going on to the Senate, where it’s expected to move forward.
As Part of the SECURE Act:
- Small businesses would have more avenues to offer retirement plans to their employees
- Part-time workers would get access to 401(k) accounts
- The use of annuities would increase in retirement accounts
- Raises the age Americans must start drawing from retirement savings, from 70½ to 72
- Provides more years for people to contribute to individual retirement accounts
There are many other noteworthy details listed in the act, such as penalty-free withdraws under certain conditions. To read full details about the SECURE Act go to:
https://www.congress.gov/bill/116th-congress/house-bill/1994.
For nearly 50 years, AmeriLife has offered insurance and retirement solutions to provide peace of mind and help people live longer, healthier lives. We are following the SECURE Act closely and will be providing additional information as this Act continues to move forward.