Many people have asked how the retirement proposals in a fact sheet published before President Barack Obama’s State of the Union address will affect them. The answer is they won’t — only proposals that become law affect citizens.
The administration’s advocacy for automatic IRAs made clear that retirement security is a priority. The concept of mandatory IRAs has drawn bipartisan support from members of Congress as a means to reduce social welfare costs. The idea is that the more workers save for retirement, the less government support they need as retirees. But not surprisingly, there may be partisan roadblocks on the journey from proposal to law.
Tom Rowley is the Director of Retirement Business Strategy for Invesco.
Invesco Distributors, Inc. 02/15
