Retirement Trends

The ongoing battle over the use of environmental, social and governance factors when making investing decisions for retirement plans continues, as Representative Rick Allen reintroduces new anti-ESG legislation.

The Retirement Savings for Americans Act, which is supported by Charles Schwab and the National Economic Council, was reintroduced in the Senate by Sen. John Hickenlooper.

The proposal, which calls for hiking the required pension contribution for federal employees to 4.4% of salary, will now advance to the House Budget Committee.

The retirement industry is at a pivotal moment – after a decade of strong growth fueled increased accessibility of defined contribution plans, the retirement industry now faces significant challenges as well as opportunities, according to McKinsey.

Around 3 in 10 workers believe having investment options that provide guaranteed lifetime income to be the most valuable improvement to their plan, according to EBRI’s annual survey.

This new plan, introduced under SECURE 2.0, have lower employee contribution limits compared to traditional 401(k)s and allow for reduced recordkeeping requirements, which reduce administration costs.