The importance of retirement plans can never be undermined. In accordance to the preceding statement, there has been a new legislation that has come to public knowledge in the past week. This governs the establishment of a new retirement coverage plan for all the employees of the state that are currently devoid of the luxury of having a workspace plan. This will be built on the retirement coverage steps that have been taken recently at the state and the federal levels.
New retirement coverage plan for all?
Sponsored by Senator Jeff Merkley of Oregon, the American Savings Act would go on and establish a universal savings account known as the American Savings Account. As the name indicates, the plan is meant to cover all the working Americans completely regardless of their designation or the size of their employers.
This plan was always going to come pertaining to the shifts that we have seen far away from the pension plans and in to the specific contribution plans that has made around 68 million deserving Americans live without a workspace plan.
This lack of retirement coverage has added a lot to the retirement savings shortfall in the country with 14 thousand dollars being the median account balance for the people nearing their retirement. This was indicated by David Madland, who is a Center for American Progress’ senior fellow.
While we are still to see more details of this plan, we can expect it to go a long way in helping those who don’t have any ways of securing their lives after retirement. The initiatives that led to the spawning of this plan can’t be overlooked and their importance can never be undermined. Here’s hoping that this bill gets passed and gets put in to practice as soon as possible.
