Inauguration Day. A new President. New priorities. What might the next term bring to the retirement arena?
More access to retirement plans for everyone. In 35 years in the industry, I have yet to hear anyone say, "I have too much money". I have had folks say the opposite though which is usually paired with, "I have to keep working". I would prefer people get to retirement and say, "I want to keep working because I enjoy what I do, I am physically fit, and mentally capable". Access to retirement plans is predicated on a fair living wage though. Ready for the conversation?
An acknowledgment that what matters in choosing 401k plan investments is a defendable and repeatable process. Politics, culture wars, and odd requests for how much a plan has invested in coal are not going to get workers to the goal of retiring with dignity. Defendable and repeatable. Pecuniary. End of discussion.
A Social Security funding gap solution, perhaps? There are numerous solutions on the table including increasing the amount of payroll taxes collected. In other words, tax salaries above $168,600 (the 2024 limit). If the idea is that everyone should pay their fair share, then this might be a path forward.
And how about an honest conversation on tax cuts while we are at it? As I tell all of my 401k participants, a budget has two levers - revenue and expenses. To make the country work, you need revenue to fund expenses. And if revenue is not enough, you either have to raise revenue (ie, increase taxes) or cut expenses. Be done with the smoke and mirrors and accounting gimmicks. Just tell it to us straight.
I am sure the pundits will have more to say but ultimately, to paraphrase Gandhi, there is one truth. The greatness of a nation and its moral progress can be judged by the way the least of society are treated. I think that is a fair yardstick. Time will tell. Here's to hoping.