A Bipartisan Nudge Toward a Simpler, More Secure Retirement
Jul 31, 2026
A Bipartisan Nudge Toward a Simpler, More Secure Retirement
Jul 31, 2026
Every day next year, roughly 11,200 Americans will turn 65. Many more will retire earlier than planned, pushed out by job loss or health. However they get there, they’ll all face the same question: will my money last?
Congress is helping retirees say “yes” by introducing the Retirement Simplification and Clarity Act by improving access to guaranteed lifetime income. Sens. Marshall and Gillibrand have now introduced the measure in the Senate, joining Reps. Panetta and LaHood, who are championing companion legislation in the House. This bipartisan group of cosponsors across both houses demonstrates the need and appetite for action on improving retirement security for all Americans.
The Bipartisan Solution
This bipartisan bill would let workers 50 and older roll part or all of their 401(k) savings into an annuity for guaranteed lifetime income — without first having to leave their job or their plan. Right now, that option largely doesn’t exist: most people can’t move money into an annuity while they’re still enrolled in their employer’s 401(k), which limits their choices for no good reason. It’s important that this solution has bipartisan support, as a majority of voters across party lines are worried about a retirement crisis.
Simplifying Long-Term Planning
The bill also tackles something less flashy but just as important: the notice workers get when they leave a job and have to decide what to do with their 401(k). A 2024 Government Accountability Office report found that roughly 80% of eligible 401(k) participants didn’t know all four of their distribution options. That’s not a knowledge gap you can shrug off — it’s the difference between a secure retirement and a costly mistake. The bill directs the IRS to rewrite these notices in plain, straightforward language.
Why it Matters Now
The appetite for this kind of guaranteed income is apparent, with 94% of savers saying predictable monthly income would be valuable. Additionally, 88% of savers want secure income options in their workplace plan. Beyond this interest from savers, a new study also shows that retirees fare better when they annuitize some portion of their savings.
Simplifying the rules and expanding access to lifetime income options isn’t partisan — it’s a response to what workers are already telling us they want. With Sens. Marshall and Gillibrand championing this effort in the Senate and organizations from ACLI to NAIFA endorsing it, the Retirement Simplification and Clarity Act is a practical next step Congress can take to help more Americans answer “yes” to the question that keeps them up at night.
Andrew Remo
Andrew Remo serves as Vice President, Retirement Security for the American Council of Life Insurers. In this capacity, he plays a leading role in advocating for policies that help people access the tools they need to save and ensure those savings last a lifetime. Previously, Andrew worked on these issues for the American Retirement Association and on Capitol Hill.
