Helping workers save for retirement on the job should help improve their ability to plan, save, and invest for retirement on their own.
In late May of this year members of the House passed H.R. 1994 – the Setting Every Community Up for Retirement Enhancement Act of 2019, or SECURE Act bill – by a 417-3 vote. The Senate is now preparing to consider S. 972 or RESA bill, which has support on both sides of the aisle.
Certain provisions in the bills could help small employers join together and offer coverage through multiple employer retirement plans. Implementation of either bill could help many more U.S. workers save for retirement.
Industry groups brought members to Capitol Hill to support passage of the bills and to explain the provisions to lawmakers and congressional aides. Retail life insurance agents might be supporting SECURE and RESA for the good of the workers, but they still have concerns about how more solid employer-sponsored retirement plans would impact sales of annuities and life-insurance products used in individual retirement savings and income planning.
Of course, the real problem is the many Americans who have no retirement savings at all. Implementing either the SECURE Act bill or the RESA bill will increase the retirement pie greatly. Agents should continue to stay involved and encourage their legislators to support the bills.
At the end of the day, both the SECURE Act bill and the RESA bill are responsible and attractive means to advance retirement security. Still, supporters need to be patient. Even if one of the bills, or both, becomes law quickly and works as supporters hope, the new law likely would not take effect until January 1 2022 at the earliest.
Once new products and options are available, employers would need time to decide what to do and to act on those decisions.
For more information, please read:
The Retirement Bills Should Be Good for Retail Advisors: Phil Waldeck | ThinkAdvisor