The Lifetime Income Disclosure Act (LIDA) would require retirement plans, like 401(k)s, to regularly disclose the real-world benefit of savings. To reach this goal, each 401(k) statement would be required to include a person’s current savings and how those savings would translate into a monthly paycheck for life.
This information will help a consumer understand whether they are saving enough or need to save more. A recent Gallup poll found that 64 percent of Americans are worried about not having enough money for retirement.
“We all struggle to know how far our savings will stretch into retirement,” Messer said. “Seeing the value of a retirement account balance as a monthly income payment gives folks an idea of how much they will have for monthly expenses and whether they are saving enough today.”
The bill was introduced today by Messer and Rep.
“This bill creates a straightforward tool to help workers with employer sponsored retirement plans determine if they are on track to meeting their retirement goals.” Pocan said. “Seeing how retirement savings translate into an expected monthly payment drives home the importance of saving early and often. I’m proud to join my colleagues in introducing this bipartisan bill to ensure Americans have better information to plan for retirement.”
“American workers need access to the best available information about their investment choices and exactly how much they will have earned when they retire,” said Isakson, chairman of the
Several industry groups sent letters to
Read this original document at: https://messer.house.gov/media-center/press-releases/messer-bill-would-help-working-americans-better-plan-for-retirement