Retirement Services Industry and the Media

Expand outreach efforts and promote available savings and retirement planning tools and resources;
Promote awareness of tax incentives for savings, including the Saver's Credit and Catch-Up Contributions; and
Promote awareness of the financial penalties of taking withdrawals from 401(k) and other retirement savings plans.

Employers and Plan Sponsors

Offer competitive retirement benefits and encourage participation;
Add, increase and/or reinstate matching contributions to 401(k)s or similar plans; and
Encourage employees to use the educational resources offered by their retirement plan providers.

Policymakers

Expand the Saver's Credit by raising income eligibility requirements so more filers are eligible;
Expand Catch-Up Contributions by raising limits and lowering the eligible age;
Extend the 401(k) loan repayment period for terminated plan participants and eliminate the six-month suspension period following hardship withdrawals;
Require retirement plan statements to state participant account balances in terms of a lifetime income as well as a lump sum; and
Expand retirement plan coverage to more workers by expanding the tax credit for employers to start a plan and facilitating the opportunity of employers to participate in existing plans by implementing reforms to multiple employer plans.

"Today's workers are expected to self-fund a substantial portion of their retirement income," Collinson said. "If displaced workers fail to overcome their retirement savings setbacks, due to unemployment or underemployment, society may ultimately bear the cost when future generations of senior citizens run out of savings. This will only add further strain on Social Security, Medicare, Medicaid and other social services programs for the elderly."

Instant Insights /

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