Bipartisan legislation recently introduced in Congress would allow participants in company retirement plans to receive an annual statement that shows them how much monthly income they can generate from their retirement savings.
The bill, Lifetime Income Disclosure Act, was introduced last week in both the Senate (S. 868) and the House (H.R 2055) by Sens. Johnny Isakson (R-GA) and Christopher Murphy (D-CT) and Reps. Luke Messer (R-IN) and Mark Pocan (D-WI), respectively.
The bill drew praise from the American Council of Life Insurers (ACLI), which said it would make it easier for workers to understand how their savings will address their month-to-month living expenses.
“American workers need additional education about their retirement savings and how those savings translate into monthly income. This legislation will ensure workers receive this crucial information,” ACLI President and CEO Dirk Kempthorne said.
This information will help workers make wise decisions about retirement and retirement savings, he added.
“Most workers recognize the need to accumulate retirement assets, but many may not think about the need to manage their assets and withdrawals over the course of a retirement that could last 30 years or longer,” Kempthorne said. “By showing what a lump sum really means in terms of paying the monthly bills, the legislation will help countless workers improve their long-term retirement planning.”