US. How the Secure Act Could Affect Retirement Savers
In December 2019, the federal government passed into law a set of reforms designed to help Americans achieve retirement security
The legislation—known as the Secure Act—broadens access to tax-advantaged retirement-savings accounts and lets Americans keep money in such accounts longer, among other things.
In recent months, worries about Americans’ retirement security have been heightened by the coronavirus pandemic. The mass unemployment caused by Covid-19 is a reminder of why people need retirement savings in the first place.
So how consequential is the Secure Act? And how can its provisions help workers navigate the current economic downturn?
From the perspective of behavioral economics, the Secure Act corrects some of the blind spots people have when it comes to saving for retirement. But it doesn’t go far enough. Policy makers can and should do more to help people overcome the psychological obstacles that keep them from saving.
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