While we wait for highly anticipated end-of-year movement on the SECURE 2.0 bill on Capitol Hill (fingers crossed), another estimate is out claiming the comprehensive retirement reform package would create “billions of dollars” in increased savings.
New research released today by the American Council of Life Insurers—based on analysis of a revenue estimate of the legislation by the Joint Committee on Taxation, found that the bill would increase savings over 10 years for specific groups of Americans including:
• $40.5 billion in increased savings for new workers
• $20.5 billion for small business employees
• $9 billion for older workers
• $8.5 billion for student loan borrowers
• $2.7 billion for low- and middle-income earners
• $1.5 billion for long-term, part-time workers
• $865 million for nonprofit workers
See ACLI’s infographic here.
“SECURE 2.0 builds upon the SECURE Act that passed in 2019 and would address gaps in the retirement system that have left some people on the sidelines of savings, unable to access workplace retirement plans,” said ACLI Vice President, Retirement Security & Principal Deputy Kathleen Coulombe. “It overwhelmingly passed the U.S. House andsimilar legislation was passed by two U.S. Senate Committees. With strong bipartisan support and a pressing need for action, the time is now for Congress to pass the bill and send it to the president’s desk.”
The American Retirement Association also weighed in on the potential savings windfall Americans would reap should SECURE 2.0 become law. In a recently released report, ARA said the SECURE 2.0 bill contains two key provisions that would greatly increase the number of Americans saving for retirement and who have access to a retirement plan at work: the Saver’s Match Program and the Starter K Program.
The report states that because of the transformation to the Savers Credit into a Matching Program, 108 million Americans would be eligible to take advantage of this important individual tax policy. In addition, the report states that due to the enactment of Starter K (with enhanced retirement plan startup credit), 19 million new participants would be brought into the retirement system.
SEE ALSO:
• SECURE 2.0 Could Improve Retirement Savings for 100 Million+ Americans: ARA