Currently about half of all workers lack workplace pensions or retirement plans. Among the President’s many bold ideas outlined in his recent address to Congress and 2010 budget are two little-noticed proposals for helping people build retirement security.
In addition, the Budget proposes to expand retirement savings incentives for working families by modifying the existing Saver’s Credit to provide a 50-percent match on the first $1,000 of retirement savings for families that earn less than $65,000. The credit would be fully refundable to ensure that savings incentives are fair to all workers.
These proposals would go a long way towards increasing both the number of workers who save for retirement and the amount of personal savings that workers accumulate to supplement Social Security.