Nearly 70 million Americans do not have access to a retirement savings plan through work. But, every federal employee, including every member of Congress, has access to the Thrift Savings Plan, to promote retirement savings and ensure their retirement security. What if everyone had access to the Thrift Savings Plan? The American Savings Act, a bill in Congress sponsored by Senator Merkley, would promote “a more secure retirement future” for everyone without a retirement savings plan.
Federal employees are automatically enrolled in the Thrift Savings Plan, which has low fees and clear and simple investment options. So, most of them have retirement savings. But, one in three working-age Americans report having no retirement savings whatsoever.
To help encourage everyone in America to save for retirement, the American Savings Act would automatically enroll everyone without an employer retirement savings plan. Employees can decide how much to set aside for retirement up to $18,000 a year.
The American Savings Act would give everyone access to universal, simple, portable American Savings Accounts, personal retirement savings plans. To read the full bill, click here.
Here’s more from Just Care on retirement security:
- MyRA , a new retirement savings option from the U.S. Treasury
- What’s a Guaranteed Retirement Account?
- Is it fair to say we have a retirement crisis?
- Three ways government could help promote retirement security
- Beware of reverse mortgages
- “Money Smart for Older Adults,” advice on how to protect yourself from financial scams from the Consumer Financial Protection Bureau