Updated on Jun 24 2019
As we age, working full-time can become challenging. Declining health, caregiving responsibilities, and raising families are all examples of life circumstances that can keep older adult workers from a full-time job. New legislation aimed at helping workers in the U.S., including part-time workers, save money for retirement represents a rare instance of bipartisan collaboration in Congress — and may be the most significant retirement reform in recent years.
Learn more about House Resolution 1994, also known as the Setting Every Community Up for Retirement Enhancement or SECURE Act of 2019, and how it strives to expand retirement savings programs for part-time workers.
Expanding Retirement Options for Part-Time Workers
According to the AARP, nearly 50 percent of U.S. workers have a job that does not offer retirement benefits. The SECURE Act would allow smaller employers, regardless of industry, to band together and create collective 401k plans, reducing administrative hassles of building their own 401k plans. Making it easier and more economical for companies to offer retirement plans to part-time workers, these plans would offer low-cost funds and greater assets with more purchasing power than previously available to small businesses. The legislation would also offer increased tax credits to smaller employers offering retirement plans to their employers.
Statistics show that part-time workers and those employed by small businesses often fall behind in retirement preparedness. The SECURE Act would help expand access to retirement savings programs beyond traditional full-time employees to include permanent part-time workers. This is especially helpful for seniors looking to increase retirement savings later in life who are only able to work part-time.
Increased Flexibility in Retirement Income
Another major part of the new legislation would allow for 401k participants to convert some or all of their account balance into a pension-like payout option. A survey from the Employee Benefit Research Institute found that 80 percent of respondents would consider using some or all of their account balance to buy a guarantee lifetime income option. The SECURE Act would allow this to become a reality by giving employers an option to offer lifetime income annuities.
Get Expert Advice for Your Financial Future
If passed, the SECURE Act could help Americans fix decades of financial regrets. In a recent Bankrate.com survey, 76 percent of respondents said they have at least one financial regret, the largest one being not saving early enough for retirement (27 percent), followed by not having enough money in an emergency fund (19 percent).
Estimating expenses in retirement and saving enough for retirement can feel overwhelming but there are expert financial advisors who can help. A trusted financial advisor can help you navigate the requirements and hit important retirement planning milestones. Connect with a financial advisor today to set your financial future up for success.
Originally published at https://seniorfinanceadvisor.com.