America's retirement crisis

Apr 06, 2022
217 views
0 comments
Share
Mentoring & Coaching

Congress recently passed the Securing a Strong Retirement Act 2022 or Secure 2.0. The proposal is a result of the observation that more than half of the retired or retiring population in America do not have a retirement plan or sufficient savings. According to a new Allianze Life Study, 6 out of 10 retirees fear running out of money more than death.

The bill has 5 major suggestions which will eventually secure life after retirement. One of the major pitfalls of the current system is that many times workers don't participate in employer-sponsored retirement programs. The bill addresses this issue by making automatic enrollment mandatory for all businesses with over 11 employees. As per the bill, about 3% of the employee's salary would automatically be shifted into their retirement fund, this percentage will increase every year capping it at 10%. "Pre-retirees" or older workers who are just a few years away from retirement can supercharge their retirement savings under Secure 2.0. So that by the time they retire, they have a significantly large nest egg.

The bill also makes changes to the RMD or reacquired minimum distributors or RMDs. This is the mandatory amount that retirees have to withdraw every year. Secure 2.0 will delay RMDs to when retirees turn 75 rather than 72 as specified by the current law, therefore providing more flexibility. The new bill states that employers could help with student loan payments by considering them as elective deferrals to their retirement account, this helps employees who aren't able to save for retirement due to student loan repayments. Employers could also put up matching contributions into an employee's Roth IRA.

Source: CBS News

217 views
0 comments

Tags In

Previous days news

Mar 30 Mar 28 Mar 27 Mar 23 Mar 16

Best tech jobs in the United States : BLS data

Sep 06, 2022
472 views
0 comments
Background Checks

For several reasons, the IT sector is appealing to job seekers. ...Read more

Salaries for Californian fast food employees might rise to $22 per hour

Sep 06, 2022
448 views
0 comments
Background Checks

Despite the opposition of restaurant owners who worried it would raise customers' bills, California Governor Gavin Newsom on Monday signed a nation-leading law providing more than 500,000 fast food employees additional authority and rights. ...Read more

Workers leave as job dissatisfaction grows

Aug 17, 2022
505 views
0 comments
Background Checks

Demands for improved pay and workplace environments are coming from workers in California to New York. ...Read more

Microsoft offers graduates from African nations job prospects in the US & Canada

Aug 17, 2022
421 views
0 comments
Background Checks

New graduates from institutions in Nigeria and other African nations have been made aware of job prospects by Microsoft. ...Read more

Casper is hiring professional sleepers

Aug 10, 2022
478 views
0 comments
Background Checks

A mattress company is searching for a role where napping while working is not only acceptable but also required. 'Casper Sleepers' are being hired by Casper, a New York-based business established in 2014. ...Read more

America's retirement crisis

America's retirement crisis

Tags In

Others news

Category

Tags

Articles