Reinvestment Alert 32 - Combating the Perilous State of Lower-Income Workers' Retirement Assets: The Recently Reenacted Federal Saver's Credit Provides a Modest Opportunity for Asset Building

Malcolm Bush and Nathan Paufve
 
The report documents the decline in personal savings rates while explaining the recent saving incentive for lower-income people created by the federal Pension Protection Act of 2006.  While the credit is a modest step in the right direction for providing lower-income people the level of incentives currently provided to middle- and upper-income people, the report recommends that it be made refundable to expand its benefits to all income qualified tax payers.