Protecting Retirement Is Key To Harris's Economic Plan
As we head towards the 2024 Presidential election, the economy and inflation are on the minds of many voters. The current administration’s efforts have already expanded opportunities for more Americans, particularly through job creation and wage growth. Looking into the future, one of the top concerns of many Americans is that they will not have enough money to comfortably retire. The Federal Reserve recently found that 37% of Americans could not pay for a $400 emergency expense, and nearly three in four Americans fear that Social Security will not be available when it is their time to retire.
Thankfully, Vice President Harris’ campaign has promised to defend and expand Social Security. She has made clear that the federal government has a responsibility to ensure that all Americans are able to be financially secure in retirement, not just the wealthy. A solid plan to reassure everyone that their Social Security benefits will be there for them will certainly go a long way with voters.
While fixing Social Security is an important step, it’s not the only tool people rely on to live out their golden years to the fullest. Additionally, Vice President Harris should focus on expanding retirement plans, such as 401(k)s and individual retirement accounts (IRA), following President Biden’s great lead. Many Americans are able to maintain their quality of life in retirement because the money they receive from their 401(k)s and Social Security together equals about 90% of their income before retirement, adjusted for taxes and inflation.
Another accomplishment that’s helped is President Biden’s signing of the SECURE 2.0 Act in 2022, a law that made it easier for people to save for retirement. It is already providing a wide range of improved benefits and is encouraging more employers to offer retirement benefits. We need more of this kind of leadership.
Some advocate for a nationwide, federally run program like the federal employees’ Thrift Savings Program (TSP) as a solution for a healthier retirement system. However, while this approach aims to simplify retirement savings, it faces significant hurdles, including very limited investment choices for savers and the potential reduction of incentives for employers to sponsor and contribute to plans. In contrast, 401(k) plans have already made significant strides in expanding access to investing, particularly among disadvantaged populations, by providing employer-sponsored options that encourage savings and investment.
Young people are watching their parents retire successfully and have seen the value of contributing to their 401(k) as early as possible. A report found that the average Gen Zer starts contributing to their retirement savings at 22 years old. They are more prepared for retirement than any other previous generation and it’s going to pay off. From 2013 to 2022, retirement assets increased by $4.4 trillion or 13.3%.
Vice President Harris, as part of her goals to help the middle class, will have an opportunity to create financial security by anchoring trusted government programs while supporting policies that allow Americans from every walk of life to save and prosper. I am confident that she will protect our families and future retirees who greatly rely on social security, alongside their 401(k)s and IRAs, to live comfortably in retirement.
The future of retirement security will continue to be a major driving factor for voters this election season. The Democratic Party must distinguish themselves as the true defenders of seniors and commit themselves to protecting the retirement system that is seeing valuable improvements all the time, and working well for millions of Americans who are currently retired or saving for a secure financial future.