Despite the resistance of small employers, the U.S. Chamber of Commerce and the mutual fund industry in general, legislation to require companies with 10 employees or more to provide employees with a seamless lifetime savings plan through an Automatic IRA, is definitely gaining steam.
The May 3 special edition of Money Management Executive featured one of the architects of the Auto IRA, David C. John of Brookings Institution and The Heritage Foundation. In a four-page Q&A, John explained how President Obama’s budget embraces the concept and how it could benefit the 78 million Americans who work for small companies and who have not a dime saved for retirement. John is certain that “once passed,” Auto IRAs will benefit those financial services firms that embrace it—with the long-term view that small accounts opened by young people will undoubtedly reach six- and even seven-figures over their working life.
The front page of the “Money & Investing” section of Saturday’s Wall Street Journal touches on all of the key points John raised in a feature interview with his counterpart, Mary Iwry, deputy secretary of the Department of the Treasury (“Iwry is Scholar of Savings: Prophet of Retirement Savings Policy Spreads the Good Word.”
To learn about the key business points as they relate to the mutual fund and insurance carrier industries, turn to the May 3 cover story in Money Management Executive: “Retirement Self-Starters: The Case for Reaching America’s 78 Million Retirement Unprepared.”