Retirement Benefits May Become a Requirement in the Future

It may not be evident, but the gaps between the classes in American society have widened over the past decade. The rich have gotten richer, while the middle class and lower classes have struggled to improve their lots. Meanwhile, costs of living have gone up, and along with that, the amount needed to live a comfortable life in retirement. On top of all this, the Baby Boomer generation–one of the largest segments of our country–has aged and started to retire, placing a strain on the resources that once were considered hallmarks of retirement. Things such as Social Security and pensions are not longer able to fully fund a post-career life. Therefore, it’s no surprise that politicians–from state legislators to members of Congress–have turned and eye towards retirement saving. They’ve been quick to act by working on or passing legislation that makes it easier for small business to provide retirement plans to employees and may even make it a requirement for employers in the future. Yes, there is Congressional legislation being discussed that could require employers with more than 10 employees to offer retirements savings options. This could be big news for people working for small or medium sized business or for employers who are too cheap to offer retirement benefits. The interesting thing about these legislative efforts is that they seem to garner bipartisan support, which is a rarity these days. It doesn’t matter where you stand politically, but any legislation that closes the retirement savings gap is a good thing. If you are a young worker (i.e. just starting out in a career), you may want to keep an eye on this legislation as it could mean less stress about retirement when it comes to where you work. If you are an employer, you may want to track how this may impact your business.