FOR IMMEDIATE RELEASE:
May 9, 2007
CONTACT:
Idil Oyman, 202-777-3518
Laura Lightbody, 202-777-3559
ASR Applauds Tubbs Jones, English Bill to Encourage "Paycheck for Life"
Legislation Would Help Americans Reach Retirement Security
WASHINGTON – Americans for Secure Retirement Chairman Harvey Blitz today released the following statement commending U.S. Reps. Stephanie Tubbs Jones (D-OH) and Phil English (R-PA) for introducing The Retirement Security for Life Act:
Representatives Tubbs Jones and English took an important step forward to address the anxiety felt by many Americans about their financial outlook during retirement by introducing The Retirement Security for Life Act.
With Social Security replacing less and less of pre-retirement income, pension coverage on the decline and lifespans on the rise, people need to plan for other sources of income in retirement. By providing a strong tax incentive for Americans to use lifetime annuities as part of their retirement portfolio, policymakers are helping people secure a steady "paycheck" for life.
This is especially critical for the 70 million American workers who lack access to any employer-based retirement benefits and will have to take saving and planning entirely into their own hands. This burden falls disproportionately on women, minorities and rural Americans.
Lifetime annuities are the only private investment vehicles that offer a guaranteed stream of income that cannot be outlived, so The Retirement Security for Life Act helps to ensure a retiree's savings does not run out during retirement, much like a pension
"This legislation is a critical component of retirement policy and we are pleased that Representatives Tubbs Jones, English and the 28 other original sponsors on both sides of the aisle have made helping Americans secure a financially sound retirement a priority on Congress' middle class agenda."
The Retirement Security for Life Act was also recently introduced in the Senate by Senators Kent Conrad (D-ND) and Gordon Smith (R-OR). The bill would provide a 50 percent tax exclusion on the income from the payout of a lifetime annuity, up to $20,000 per year. Thus, for example, a taxpayer in the 25 percent tax bracket who excluded this amount from income would save $5,000. Americans for Secure Retirement (ASR) is a coalition of 39 members representing women's, small business, agriculture, Hispanic, African American, and consumer groups, as well as life insurance companies, all united to promote incentives for annuitization of savings and/or assets as a way to secure a steady stream of income for life. To view a complete list of original co-sponsors and for more information on ASR please visit: www.paycheckforlife.org.
