Addressing members of the National Association of Plan Advisors this week, two Republican members of the House Ways & Means Committee shared their thoughts on how the economic stress caused by the COVID-19 pandemic has shined a spotlight on the need to better align retirement savings incentives.
“I actually believe, long term, the biggest issue for the United States is retirement security,” noted Rep. David Schweikert (R-AZ) pictured above. “If you look at the U.S. demographics, we have so many of our Baby Boom population moving into their retirement years with not enough resources. Now that we’re in the pandemic here, with the stock market, the ability to round out those last couple of years of work may now be disrupted,” he explained.
As for how he thinks the issue can be solved and whether it can be done in an employer-sponsored way, Schweikert suggested that it’s going to have to be layer by layer. “The employer-sponsored model is huge and we need to expand it. And we need to actually put in more incentives, particularly even for very small employers to be able to do more of that,” he noted.
His colleague on the Ways & Committee, Rep. Ron Estes (R-KS), was asked about his thoughts on the prospect for a mandate for employers to offer a retirement plan. Estes suggested that there is broad support for a “SECURE Act 2.0” that enhances existing retirement plans, he but wasn’t sure whether there’s as much support for a mandate. Read the full article.
COVID-19 Underscores Need to Address Retirement Savings Gaps, Lawmakers Suggest
