Your role in helping employees save for retirement may soon get even bigger.
A bipartisan bill was just introduced in the Senate that would require plan sponsors to provide info on how much income a participant would receive from their 401(k) each month after retiring.
It’s called the Lifetime Income Disclosure Act, and it’s designed to help individuals see how long their retirement savings would last as their assets shrink during retirement, according to Frank Keating, president of the American Council of Life Insurers, a big supporter of the bill.
Currently, most retirement plans only provide participants with lump-sum values, and many workers don’t know how that amount would translate into monthly income.
Senate Democrats and Republicans both hope that workers would use the additional retirement info this legislation would create in conjunction with their Social Security statement to piece together their individual retirement income security puzzle.
Do you think this bill would help employees better prepare for retirement? Let us know in the Comments Box below.
