Secure 2.0 and the Retirement Financing Gap: Some Positive News - CBS MoneyWatch
Much has been written about the disconnect between retirement savings goals and the prospects for reaching these goals. In fact, comparing the results of a Northwestern Mutual study question on how much is needed for a comfortable retirement with the average amount reported to be held in retirement savings accounts reveals a sizable gap…more than 90%. After years of hand-wringing about how to address this problem, we finally see some positive movement in the form of provisions buried in the $1.7 trillion government spending package approved by the House last week.
Specifically, the spending bill contains, along with many, many other things, a series of measures proposed in the bipartisan Securing a Strong Retirement Act of 2022, otherwise known as the Secure 2.0 bill. The measures target changes to the ways Americans save for retirement, offering the following:
- Expansion of the refundable tax credit known as the Saver’s Credit
- Delays in the commencement ages for minimum required distributions from retirement accounts
- Higher limits for contribution limits for “pre-retirees”
- Automatic retirement account enrollment
- College savings account rollover opportunities
- Opportunities for employers to match student loan repayments for inclusion in retirement accounts
For additional detail on these savings-related enhancements, click here to check out this cbsnews.com post by CBS MoneyWatch reporter Aimee Picchi.