For Immediate Release:
June 9, 2005
Contacts:
Kelly Alderson, 202.777.3542
Shannon Hunt, 202.777.3512
Jonathan Schecter, 202.777.3529
Statement Regarding Retirement Savings & Security Act of 2005
Senate bill marks shift in retirement security thinking – not just about saving more, but also helping people better manage their savings
Today Senators Kent Conrad and Gordon Smith introduced the Retirement Savings & Security Act of 2005. One of the major tenants of the bill is a tax incentive to encourage people to put some of their after-tax savings in an annuity -- the only way outside Social Security or traditional pension plans to ensure a steady “paycheck for life” throughout retirement. Shannon Hunt, a spokesperson for Americans for Secure Retirement, issued this statement with regard to this provision of the bill:
“We applaud Senators Smith and Conrad for having the vision to recognize that true and complete solutions to today’s retirement security challenges will come not only from encouraging people to save more for retirement, but also by providing Americans with better tools for managing those savings so they last a lifetime. Retirees deserve the security and peace of mind of knowing their savings won’t run out on them, and more importantly, that they will be able to maintain an adequate standard of living throughout their golden years. For many individuals, converting at least a portion of those savings into guaranteed lifetime income payments from an annuity may be the most effective way to ensure that their savings will not be depleted or that they do not suffer a decline in living standards. The inclusion of a tax incentive for people to put a portion of their after-tax savings in a lifetime annuity will go a long way toward providing true retirement security for all Americans.”
Americans for Secure Retirement is a coalition representing a broad cross-section of interests including women’s groups, Hispanic organizations, farming/agricultural interests, the life insurance industry, and consumer groups. For more information about the coalition visit www.paycheckforlife.org.
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