Real-Time Help for Part-Time Workers
America’s life insurers believe that everyone deserves the opportunity to prepare for a secure financial future.
This includes the more than 26 million Americans who work part-time jobs exclusively.
Unfortunately, many of these workers find it difficult to save for retirement because they have been unable to enroll in a retirement savings plan through their employer. Indeed, only four-in-10 part-time workers have access to a retirement plan at work.
To these hard-working Americans, we’ve got good news: help is on the way.
Pending federal legislation under consideration in Congress would update retirement plan rules, making more part-time workers eligible to join their employer’s retirement savings plan. The legislation would also encourage small businesses to set up retirement plans by increasing tax credits for costs associated with creating a plan.
This would be especially helpful, because many employees of small businesses don’t have access to an employer-provided plan. Only 52% of private sector workers at companies with fewer than 50 employees have access to employer-sponsored pensions, compared to 91% of workers at firms with 500 or more employees.
The legislation, known collectively as SECURE 2.0, would enhance and modernize the current, successful retirement system. It addresses gaps in the current system and targets specific groups of people that need help. For example, the legislation has provisions that would help student loan borrowers and military spouses, in addition to part-time workers, save for retirement.
Earlier this year, the U.S. House passed the Securing a Strong Retirement Act by an overwhelming 414-to-5 vote. And early versions of similar bills in the Senate have garnered wide, bipartisan support.
The time is now for Congress to come together and pass SECURE 2.0 legislation. The recent spike in inflation, on top of lingering economic uncertainties, has left many Americans concerned about their financial future. Indeed, only about three-in-10 workers think they are building a large enough retirement nest egg, and almost half (47%) expect to either retire after age 65 or not to retire at all.
By acting promptly on SECURE 2.0, Congress can help more people retire with peace of mind by increasing the availability of retirement security products for all Americans.