The good news is that retirement savings options for senior citizens are expanded with the passage of a House bill last week. The bill passed with near-unanimous passage. It now goes to the Senate for consideration.
The House legislation makes more retirement saving options available to more Americans. As a result, more part-time workers will have access to retirement options..
Retirement Savings: What The Bill Does
The House bill is called the The Setting Every Community Up for Retirement Enhancement (SECURE) Act. It passed by a 417-3 vote. As a result, the measure expands workers’ access to savings plans.
Right now, most noteworthy, 50 percent of all workers in the United States do not receive retirement benefits. The SECURE Act helps close that gap through a number of changes.
The SECURE ACT encourages small businesses to join together to create 401(k) plans for their employees. Right now, many of these businesses can not afford to provide these plans on their own.
The legislation also allows employers to offer retirement benefits to their long-term, part-time workers. Furthermore, the SECURE act likewise raises the age when people can begin taking minimum withdrawals from their retirement accounts. It now goes from from 70.5 years old to age 72.
Retirement Savings: What Happens Now?
The House Bill now goes to the Senate. Similarly, the Senate committee is also currently debating similar legislation. Their bill is called the Retirement Enhancement and Savings Act (RESA).
This bill is sponsored by the Senate Finance Committee chairman, Sen. Charles Grassley (R-Iowa). Several retirement organizations are lobbying the Senate to pass their RESA Act.
They point out that the gaps in the current system undermines the nation’s financial security, increases the risk of poverty for seniors, and reduces their quality of life.
The number of retirees is increasing rapidly as the number of seniors live longer. The passage of this legislation by the Senate can help improve the retirement of many senior citizens. It provides a safety net for seniors, well earned after decades of hard work and savings.