Americans face an alarming $7.7 trillion shortfall in personal retirement savings
Only 54 percent of working Americans believe that they will have enough money to live comfortably in retirement.
Senator Collins introduced two bills, will chair hearing focused on this issue
Click HERE to read Senator Collins’ remarks on the Senate floor
Click HERE to watch Senator Collins’ remarks on the Senate floor
Note to assignment editors and news directors: Click HERE for a high-resolution video of Senator Collins’ remarks
Washington, D.C. – America is facing a retirement crisis. Over the past four decades, fundamental changes to our retirement system have made it increasingly difficult for Americans to save for their golden years. As a result, there is an estimated $7.7 trillion gap between the savings American households need to maintain their standard of living in retirement and what they actually have. Approximately half of households age 55 and older have no retirement savings – and up to two-thirds of workers may not have saved enough to maintain their standard of living in retirement.
Today, U.S. Senator Susan Collins, the Chairman of the Aging Committee, unveiled a multi-part strategy to close this yawning savings gap and help more Americans prepare for retirement. Senator Collins introduced two bills that will make retirement savings plans more accessible to more Americans. She will also chair a hearing this Wednesday to question retirement security experts and the leader of a Maine business on challenges and potential solutions to this burgeoning problem.
“As Chairman of the Senate Aging Committee, ensuring that more Americans are secure financially in their retirement years is one of my highest priorities,” said Senator Collins. “This is a crisis that is looming on the horizon. The bipartisan bills I introduced today attempt to strengthen the pillars that make up our retirement system. It is vital that we pass this legislation to ensure that Americans can enjoy a financially secure retirement and not end up retiring in poverty.”
In remarks from the Senate floor this afternoon, Senator Collins spoke about the two bipartisan retirement security bills she introduced today.
- The SIMPLE Plan Modernization Act, introduced with Senator Mark Warner (D-VA), would provide greater flexibility and access to small businesses and their employees seeking to utilize the popular SIMPLE plans as an option for saving for retirement. Their legislation was endorsed by AARP. Read more about the SIMPLE bill HERE.
- The Retirement Security Act, introduced with Senator Maggie Hassan (D-NH), would help small businesses offer retirement plans to their employees and encourage individuals to boost savings for retirement. Read more about the Retirement Security Act HERE.
In a colloquy on the Senate floor, Senator Hassan began her remarks by “thanking Senator Collins for her work on [the Retirement Security Act], on the [SIMPLE bill] that she discussed, and for her leadership as Chairman of the Aging Committee to help ensure that older Americans can thrive, and that includes, of course, making it easier to save for retirement.”
This Wednesday at 9:30 a.m., Senator Collins will chair an Aging Committee hearing titled, “Financial Security in Retirement: Innovations and Best Practices to Promote Savings.” The hearing will focus on the three key challenges Americans face when planning and managing their retirement: (1) accessing retirement plans through their employers; (2) accumulating enough retirement savings; and (3) ensuring their savings and benefits last through retirement. It can be livestreamed HERE.