New Bill Aids People Planning for Retirement
Monday, September 19, 2022
A new piece of legislation in Congress will help people across the U.S. prepare for retirement with greater ease.
The EARN Act - short for Enhancing American Retirement Now - reduces requirements for part-time workers to participate in retirement plans, allows for penalty-free emergency withdrawals from retirement accounts, and encourages small businesses to adopt retirement plans.
AARP Connecticut state director Nora Duncan said she feels this will expand people's options when they consider retirement planning.
"While Social Security continues to be the bedrock of retirement income for American workers and their families," said Duncan, "individuals want and need additional retirement income sources in order to live the way they need to as they age."
The EARN Act comes just as Connecticut became one of a few states with state retirement plans, which Duncan said she feels could help businesses of all sizes establish some kind of retirement plan.
Other states with these kinds of plans include California, Oregon and Illinois. Although these plans are relatively new, data from the Pew Research Center shows these plans have seen steady growth since their inception.
While the EARN Act is still relatively new, Duncan said she sees some potential opposition to it coming from the finance sector regarding how people receive their statements.
According to data from AARP, more than half of adults with employer-sponsored retirement plans would prefer paper statements.
She said she feels some benefits to the new bill come with drawbacks as well.
"Being able to qualify for retirement savings at work in two years of part-time work with a company rather than three, really makes it easier to save for retirement," said Duncan. "But, this isn't particularly helpful to the many older workers who can only find part-time work."
She added that this also might not be helpful for people who have to work part-time, due to caregiving responsibilities.
But, the EARN Act has received a great deal of bipartisan support in Congress, providing the possibility of its safe passage in the coming months.
get more stories like this via email
2022 was a banner year for women elected as governor. Nearly one-third of America's governors will be women next year, which is a record. Iowa …
Residential water rates in Michigan are soaring, with an estimated one out of ten households without access to or unable to afford clean water…
Fracking is a very water-intensive industry, and a new study dives into the impact of unconventional oil and gas drilling on aquatic ecosystems in …
A Bellingham man who supports people with dementia has received one of the most prestigious awards for volunteerism in Washington state. The …
Native American tribal communities and conservation groups got a big win Wednesday as President Joe Biden announced he intends to create a new nationa…
A decision could come today on Nevada's bid to become the first state in the nation to hold a Democratic primary in 2024. The Democratic National …
Snow is on the ground in much of Minnesota, but the state is coming off another warm season with notable drought conditions. Those who monitor …
By Ray Levy Uyeda for Yes! Magazine.Broadcast version by Mike Moen for Greater Dakota News Service reporting for the Solutions Journalism Network-…