As we head into the 2024 election year, experts are projecting the upcoming trends in retirement public policy and regulation.
“On the Hill, staff and members are already hearing from constituents that they won’t have any Social Security in 2024. As we get into the election, this will be a hot topic for them.”
Aliya Robinson, T. Rowe Price
T. Rowe Price held its U.S. Retirement Market Outlook event this week, commenting on possible developments within retirement income, practices, and public policy.
Aliya Robinson, managing legal counsel of Legislative and Regulatory Affairs at T. Rowe Price, noted that it’s unlikely we’ll see further retirement legislation come the presidential election in 2024.
Instead, Robinson anticipates politicians will continue voicing their plans surrounding Social Security, especially as more of the general public expresses worries about potential insolvency in 2034.
Robinson particularly noted that more Americans believe insolvency will come as soon as the new year, showing that many are misinformed on Social Security. “On the Hill, staff and members are already hearing from constituents that they won’t have any Social Security in 2024,” added Robinson. “As we get into the election, this will be a hot topic for them.”
The second item Robinson noted included tax reforms, and specifically, the expiration of the Tax Cuts and Jobs Act of 2017. The end of the Trump-era legislation in 2025 means Americans will again see taxes at rates prior to the legislation’s passage.
“For those who support it, there will be conversation about expanding it, whereas those that oppose it will talk about repealing and replacing it,” Robinson noted. “In both of those instances, we will see conversations about retirement provisions and retirement policies.”
Congressional focuses in 2024
One of the top congressional focuses for the new year includes increasing coverage to different groups of American workers, whether that’s faster implementation of state automatic individual retirement account (IRA) programs, or a decrease in the minimum participation age from 21 to 18-years-old, Robinson listed.
Other top trends are focuses on retirement and lifetime income; the ages to take required minimum distributions (RMDs); and Rothification strategies.
DOL fiduciary rule
The T. Rowe Price panel also took time to discuss the latest controversial fiduciary proposal by the Department of Labor (DOL), in which Robinson questioned whether a proposal to expand the definition of a fiduciary could be advantageous to the retirement industry now. She explained that the time and energy spent on enacting the rule could be expended on implementing past legislative matters, including optional provisions brought on by SECURE 2.0.
The panel had previously mentioned that optional provisions in SECURE 2.0, including those impacting student loan payments and emergency savings, would drive personalization tactics within plans.
“The time that is spent looking at the proposal, finalizing it, implementing it, and what will definitely be a congressional challenge and possibly judicial challenges, is time that could be spent doing other things, such as implementing the optional provisions,” Robinson pointed out. “At some point, it is becoming a bit of a distractor from other things in the retirement community that could be a bit more beneficial.”
SEE ALSO:
- Bipartisan Bill Backs 401(k) Plans for Teen Workers
- House Passes Amendments Blocking DOL Fiduciary Rule
- 3 Key Themes Shape 2023 Retirement Outlook: T. Rowe Price
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
