US. A simple change to your 401(k) statement could encourage you to save more for retirement
Very little is happening on Capitol Hill with regard to retirement. Hence, I’m always delighted to find a piece of legislation — big or small — that moves the system in the right direction.
The Retirement Enhancement and Savings Act of 2018, a bundle of small changes aimed at increasing voluntary retirement savings, is one such bill. Another is the Lifetime Income Disclosure Act (H. R. 2055), which would amend the Employee Retirement Income Security Act of 1974 (ERISA) to require pension benefit statements to include a lifetime income disclosure at least once a year. The disclosure, which would cover 401(k)s and other employer-sponsored plans, would show the lifetime income stream equivalent of the total assets accrued by the participant. The Department of Labor (DOL) would issue assumptions that plan administrators could use, without concern of liability under ERISA, to convert total accrued benefits into lifetime income stream equivalents.
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