Maybe it’s because I have miles to go until I can actually collect Social Security – not to mention the fact that I’m
That said, perhaps such statements are a more used and useful tool for other Americans. Thus, Sens. Jeff Bingaman (D-N.M.), Johnny Isakson (R-Ga.) and Herb Kohl (D-Wis.) were inspired to craft legislation that would require 401(k) sponsors to provide participants with SSA-esque statements projecting how much investors would have each month in retirement based on how much they have saved.
“It is estimated that half of American households will lack sufficient retirement income to maintain their pre-retirement standard of living,” Bingaman said,
Isakson added, “Defined contribution plans such as 401(k)s are the retirement plans of the present and future. This bill will enable participants to receive additional, helpful information so they can better plan for their retirement.”
The bill, called Lifetime Income Disclosure Act, already has the thumbs-up from AARP, the Retirement Security Project and the Women’s Institute for Secure Retirement.
While that definitely increases the measure’s street cred in my eyes, I’m still not sold. Not only do I think that not many Americans actually read their SSA statements, I know for a fact that since the bottom dropped out of the economy, there’s a sizeable number than
Not to mention that even the most “oooh, shiny!” statement won’t do any good unless two things happen in larger numbers:
1. More employees have
2.
What do you think? Do you think Bingaman-Isakson-Kohl are onto something? Would SSA-type statements be helpful to participants and encourage better retirement savings/planning?