Fodder for Congress

The effect of stock market volatility on families' retirement savings is just one issue that Congress should be concerned about, according to a report issued July 14 by the Congressional Research Service in Washington.
JUL 26, 2009
The effect of stock market volatility on families' retirement savings is just one issue that Congress should be concerned about, according to a report issued July 14 by the Congressional Research Service in Washington. The report, which cited 2007 data, listed seven major policy issues that it said Congress needs to address: • Access to employer-sponsored plans. Just 61% of employees in the private sector were offered a retirement plan of any kind at work. • Lack of participation. Between 20% and 25% of workers whose employers offered defined contribution plans didn't participate, with workers under 35 less likely than older workers to join the plans. • Low contribution rates. Contributions to 401(k)s averaged just 6% of pay. • Lack of diversification and high risk. Fully 78% of DC plan assets were invested in stocks and mutual funds, a ratio that varied little by age. • Confusion about fee disclosures and providers. Lack of information about pre-retirement withdrawals, which can have adverse long-term effects on retirement income. • Lack of support for the use of annuities, which can protect retirees from some risks of outliving assets or investment losses Congress should consider providing tax incentives targeted to low- and middle-income workers, the report suggested. Higher-income earners would continue to save much of their income even without tax incentives, according to the report.

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.