NIRS Testifies Before House Ways and Means Committee on the U.S. Retirement Savings Shortfall

National Institute on Retirement Security Testifies Before House Ways and Means Committee on the U.S. Retirement Savings Shortfall

Bold Steps Needed to Rebuild Retirement Readiness

WASHINGTON, D.C., February 6, 2019 – Diane Oakley, executive director of the National Institute on Retirement Security, will testify today before the U.S. House of Representatives Ways and Means Committee at a hearing, Improving Retirement Security for America’s Workers. The hearing will begin at 10:00 AM ET in 1100 Longworth House Office Building, Washington, D.C.

Oakley will provide committee members with an overview of the fundamental changes to the nation’s retirement system that have made it increasingly difficult for Americans to prepare for retirement. She will discuss how the disappearance of pensions and declining workplace retirement plan coverage means that Americans have a dim retirement outlook.

She also will provide insight on how the deep retirement savings shortfall means that many Americans will face the prospect of continuing to work well into their 60s, a substantially reduced standard of living, and/or the need to turn to families or government for financial assistance. Ultimately, the inability of older Americans to be self-sufficient after a lifetime of work will have negative impacts on the U.S. economy, government budgets and families.

The testimony also will provide committee members with insight on bold actions that can be taken to improve the retirement outlook for working Americans.

Download the testimony here.

Read more about NIRS research cited in the testimony, including:

• Retirement in America | Out of Reach for Most Americans?, which finds that the median retirement account balance among all working individuals is $0.00, and that 57 percent (more than 100 million) of working age individuals do not own any retirement account assets in an employer-sponsored 401(k)-type plan, individual account or pension.
• Latinos’ Retirement Insecurity in the United States, which finds that only 31 percent of all working age Latinos participate in workplace retirement plans, resulting in a median retirement account balance equal to $0.
• Millennials and Retirement: Already Falling Short, which finds that this generation is far off-track when it comes to saving for retirement, and that 66 percent of working Millennials have nothing saved for retirement.
• Retirement Security 2017: Americans’ Views of the Retirement Crisis, which finds that 76 percent of Americans are concerned about their ability to achieve a secure retirement, and some 88 percent agree that the nation faces a retirement crisis.

The full body of research is available at www.nirsonline.org.

The National Institute on Retirement Security is a non-profit, non-partisan organization established to contribute to informed policymaking by fostering a deep understanding of the value of retirement security to employees, employers and the economy as a whole. Located in Washington, D.C., NIRS’ diverse membership includes financial services firms, employee benefit plans, trade associations, and other retirement service providers. More information is available at www.nirsonline.org. Follow NIRS on Twitter @nirsonline.

Contact:           Kelly Kenneally | kkenneally@nirsonline.org | 202.457.8190

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