Sens. Chris Murphy (D-CT) and Johnny Isakson (R-GA) reintroduced Tuesday legislation designed to aid Americans in retirement planning in advance while ensuring they do not outlive their savings.
The Lifetime Income Disclosure Act requires 401(k) plan sponsors to inform participating workers of the projected monthly income they could expect at retirement based on their current account balance.
“Too many people in Connecticut worry about saving for retirement while also paying bills, putting kids through college and caring for older loved ones,” Murphy said.
“I’m proud to team up with Senator Isakson to introduce the Lifetime Income Disclosure Act. Our bipartisan bill gives people more transparent information about their retirement savings. There’s a lot we can do to help people save for retirement, and giving people clear information to help them make smarter decisions about their retirement savings is a good first step.”
The bill is patterned on the Social Security Administration’s annual statements, which are mailed each year to working Americans to inform them of their estimated monthly benefits based on their current earnings. Congress mandated annual Social Security statements in 1989, and they have proven to be very useful to workers in preparing for retirement.
“We’re working to ensure Americans have all the information they need to make informed decisions about their retirement investments early on because the last thing they should have to worry about is running out of savings during their retirement years,” Isakson said. “This information not only helps today’s workers to plan ahead but promotes increased savings while they are still in the workforce.”