SECURE 2.0 Act Still Leaves Holes in US Retirement Plans

Congress is on the verge of passing a bill called SECURE 2.0 to help American workers save for retirement. Support is bipartisan: Mitch McConnell and Alexandria Ocasio-Cortez both voted for it. But although there are some good pieces to the legislation, no one should confuse it with a solution to the nation’s retirement crises. And in fact, a better alternative was introduced in Congress just a couple of weeks ago. It also has bipartisan support. That bill, known as the Retirement Savings for Americans Act of 2022 (RSSA) would have been the better investment.

Reform is badly needed. Our current retirement system is inefficient and patchy, and the system disproportionately benefits those with high incomes. Most workers lack consistent workplace retirement plan coverage, a main driver of inadequate savings and retirement inequality. Up to 40% of middle-income older workers are at risk for downward mobility into poverty or near-poverty in old age. About half of American households aren’t saving enough to sustain their standards of living after retirement.