Fifty Years Later, It’s Time to Reimagine Retirement Savings

It’s hard to believe it’s been fifty years since Congress passed the landmark retirement law that gave us 401(k) and I.R.A. accounts. While these accounts were designed to help Americans save for retirement, the reality is they mostly benefit higher-income households. For those of us nearing retirement, it’s crucial to understand how we can improve and make the system more inclusive.

Here are four ways we can enhance retirement savings for everyone:

1. Expand 401(k) Coverage

A significant portion of the workforce still doesn’t have access to a 401(k) plan through their employer. By expanding coverage—especially to part-time and gig workers—we can ensure more people have the opportunity to save for their future.

Actionable Idea: Encourage your employer to offer a 401(k) plan if they don’t already, or advocate for state sponsored plans that can fill the gap.

2. Make 401(k)s More Like Pensions

Remember the days when pensions were the norm? They provided a reliable source of income for retirees. By incorporating features like lifetime income options into 401(k) plans, we can bring back some of that old security.

Actionable Idea: Ask your 401(k) provider about annuity options or other ways to turn your savings into a steady income stream.

3. Ensure Better I.R.A. Investment Advice

Many of us rely on I.R.A.s but lack the investment knowledge to manage these accounts effectively. Ensuring access to quality, fiduciary advice can help us make better investment decisions and avoid pitfalls.

Actionable Idea: Seek out certified financial planners who are fiduciaries—required by law to act in your best interest.

4. Rework the System to Make it More Equitable

The current system often favors those who are already financially well-off. By implementing progressive tax incentives and matching contributions for low- and middle-income earners, we can level the playing field.

Actionable Idea: Stay informed about Social Security reforms and participate in advocacy efforts to strengthen this crucial program.

Let’s Make a Change

Retirement should be a time to enjoy life, not worry about finances. By pushing for these changes, we can create a more secure retirement for everyone. Don’t keep this important information to yourself—share this newsletter with friends and family. Together, we can make a difference.