LPL Financial Study on Secure 2.0 Supports Passage of Federal Retirement Legislation
CHARLOTTE, N.C., Dec. 08, 2022 (GLOBE NEWSWIRE) -- today released a study showing the positive impact that the federal bipartisan retirement legislation, informally known as SECURE 2.0, would have on incentivizing Americans to save. Enacting three bills – Securing a Strong Retirement Act, the RISE & SHINE Act and the EARN Act – SECURE 2.0 would build upon the success of the SECURE Act, which became law in December 2019.
“Improving retirement security means increasing retirement savings and the long-term participation of workers in the system. We must do all that we can to encourage people at all levels, especially lower- and middle-income, to take advantage of today’s retirement savings opportunities,” said Senator Ben Cardin (D-MD). “I started on this effort to improve retirement security years ago with my colleague and friend Senator Rob Portman. I’m proud to see our most recent bill largely included in SECURE 2.0. This survey provides further confirmation that SECURE 2.0 must pass this Congress in order to increase retirement savings among working families as well as help close the coverage gap.”
Senator Rob Portman (R-OH) added, “One of the highlights of my career has been working across the aisle with my good friend, Senator Ben Cardin from Maryland on retirement security legislation. As with the other three pieces of legislation we worked on together, I am proud to see that in our last Cardin-Portman project we will have a strong impact on the ability of people to save for a safe and secure retirement.”
LPL surveyed more than 600 LPL-affiliated financial advisors for feedback on major provisions in the package of bills. Overall, more than 95% of respondents support federal retirement legislation and believe that these bills would help alleviate challenges that individuals face when trying to save for retirement. Additional findings among advisors include:
- 89% believe that small businesses would be incentivized to start a plan by an increase in the existing small business start-up tax credit as proposed in the House and Senate Finance bills.
- 94% support the House provision that provides an additional small business start-up credit based on the contributions made by the employer.
- 74% believe that allowing part-time employees into a plan after two years, instead of three, would help close the coverage gap as proposed in all three bills.
- 79% believe that small businesses that make military spouses immediately eligible and vested in their plan should be entitled to a tax credit to cover the additional cost in both the House and Senate Finance bills.
- 81% support expansion of the Saver’s Credit, which is in the House and Finance bills in different forms, as a means to increase retirement savings among low- and middle-income individuals.
- 91% applaud the House and Finance bill provision allowing plans to self-correct inadvertent errors without a submission to the IRS.
“At LPL Financial, we believe that everyone deserves access to financial advice that furthers their ability to save for major life events, such as buying a home, paying for college tuition and ultimately retirement,” said LPL’s President and CEO, Dan Arnold. “In that spirit, this legislation may unlock significant retirement options for small businesses and their employees. It’s also very timely, given the impact that the pandemic has had on many Americans’ retirement savings.”
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