FOR IMMEDIATE RELEASE:
February 28,
2006
CONTACT:
Kelly Alderson 202.777.3542
Idil
Oyman 202.777.3518
SAVER Summit Attendees Urged to Address “Often Overlooked” Issues
Coalition Calls for Solutions that Help All Americans Save for Retirement – Not Just Those with Employer-Based Plans & Need for Tools to Both Save and Manage Retirement Income
WASHINGTON—On the eve of the final SAVER Summit several national organizations are calling on Secretary of Labor Elaine Chao and Summit delegates to address the need for retirement savings programs accessible to all Americans and the need for mechanisms that not only encourage people to save more, but also provide a means of managing those savings so they last throughout retirement.
In a letter to Secretary Chao, members of Americans for Secure Retirement highlight these two issues as critical to any true public discussion about retirement security. Many of the organizations represent populations who face a higher degree of risk in retirement such as women, farmers and small business.
“People are often surprised to learn that 58 percent of the American workforce will depend solely on Social Security or their own personal savings to fund their retirement. The numbers are far more dire for farmers and other “at risk” populations who are far less likely to have an employer-based retirement plan,” said Larry Mitchell from the American Corn Growers Association. “As a nation, we simply must provide better ways for people to save for their retirement above and beyond employer-based retirement plans.”
Equally troubling to the group is the fact that because people are living longer than ever, they risk exhausting their savings too early in retirement. Policymakers need to provide Americans options that help them both save and manage their retirement income so it lasts throughout retirement.
“Part of the challenge in this country is encouraging people to save enough for retirement, but an equally significant issue is giving people the tools they need to manage those savings so they last a lifetime,” said Elisabeth Gehl from Business & Professional Women. “No one should live in fear that their savings will run out just when they need it most.”
The group argues that part of the policy prescription must be encouraging people to invest a portion of their personal savings in an annuity with a lifetime payout. This way, they are guaranteed a “paycheck for life” to help bridge the gap between what Social Security and employer-sponsored retirement plans cover.
Americans for Secure Retirement is a coalition of 34 organizations – representing a broad cross-section of interests including women’s groups, Hispanic and other minority organizations, agricultural groups, small business, insurance industry groups, and consumer rights organizations united in support of legislation called The Retirement Security for Life Act (S.381, H.R.819). This bipartisan legislation would provide a strong tax incentive to encourage individuals to use lifetime annuities as a means to ensure a steady “paycheck for life.” For more information on ASR, please visit www.paycheckforlife.org.
To view the letter to Chao please click here (Adobe Acrobat required)
