There are many that generally consider Social Security and retirement legislation the “third rail” of politics. What that means is that retirement legislation is so politically super charged, that to touch it would mean an instant career lose for any Congressional representative daring enough to try. As a result, neither party wants anything to do with it.
But American retirees are suffering. Inflation and rising interest rates have made it harder than ever before to save money, invest in retirement accounts, and build a nest egg. We need more progress retirement legislation, to help seniors achieve the retirement that they’ve so rightfully earned.
While many are wary of legislating retirement, that doesn’t mean that there hasn’t been attempts. Recent bills have made slight steps in the right direction, however, as MarketWatch’s Alessandra Malito reports, are there still pieces missing?
Piecing Together the Puzzle
The Secure Act was recently passed by Congress. Seniors now have a rare opportunity to play financial catch-up when it came to investing in 401(k)s. There are other bills in the works, but as we know, the legislation process can be a labyrinth. Each new piece of legislation, to those outside looking in, seem to only cover one hole at a time. For example, the EARN Act (Enhancing American Retirement Now) empowers investing in 401(k)s for businesses with no plan. However, it falls flat when it comes to ideas like automatic enrollment in that plan.
The Secure 2.0 Act is in the works, having been edited and redrafted several times since it’s conception. Bipartsian support will most likely move the bill along, however, there’s a chance it’ll look completely different by the time it becomes law.
Just because something is important doesn’t mean it’s perfect. Social Security is an important resource to millions of Americans, but the program is not without its flaws. Retirement legislation is necessary, because regardless of whether change is good or bad, if things don’t change, it’ll be bad for seniors everywhere. Join the Council for Retirement Security in its fight to protect the Social Security trust. Let’s show Congress that we aren’t afraid to mess with the “third rail.”