NAGDCA-conceived focused effort to raise awareness of the need to adequately prepare for retirement first received bipartisan Senate resolution in 2006
FOR IMMEDIATE RELEASE
Lexington, KY, October 2, 2020—NAGDCA today announced that the U.S. Senate unanimously approved a resolution supporting the goals and ideals of National Retirement Security Month. NAGDCA originally conceived a focused effort to raise awareness of the need to adequately prepare for retirement as National Retirement Security Week in 2006. NAGDCA is the premier professional association for plan administrators and services providers of government-sponsored defined contribution retirement plans.
As articulated in the new Resolution—S.Res.743, sponsored by Senator Michael Enzi (R-WY)—the Senate “calls on States, localities, schools, universities, nonprofit organizations, businesses, other entities, and the people of the United States to observe National Retirement Security Month with appropriate programs and activities, with the goal of increasing the retirement savings and personal financial literacy of all people in the United States and enhancing the retirement security of the people of the United States.”
“We’re grateful to the U.S. Senate for its ongoing support for the goals and ideals of National Retirement Security Month, as demonstrated by this newest Resolution—the 15th since we first conceived a focused effort to raise awareness of the need to save for retirement,” said NAGDCA Executive Director Matt Petersen. “National Retirement Security Month asks Americans to be aware of their financial standing with regard to retirement—and for employers to make every effort to help them take the steps necessary to adequately prepare for their financial security in retirement. Data suggests the need for increased attention and action has only grown more urgent.”
Results from TransAmerica’s 20th Annual Retirement Survey of Workers, released in May, reveals the precarious state of American workers’ financial condition and their likely inability to achieve a financially secure retirement:
- Household debt is pervasive – 82% of respondents are carrying some form of debt (e.g., credit card, auto loan, mortgage, student loan).
- Emergency savings are alarmingly low – Workers have only $5,000 (median) in emergency savings.
- Retirement savings may not be adequate – Total household retirement savings among all workers is $50,000 (estimated median).
- The majority (52%) of workers expect to work past age 65 or do not plan to retire.
“Unfortunately, these results are not surprising. Long before the negative financial impacts of the coronavirus pandemic, there was ample evidence of Americans’ financial frailty and a looming retirement crisis. The additional brunt of pandemic-driven financial woes heightens the importance of adequate saving,” Matt continued.
As noted by former SEC Commissioner Kara M. Stein in a 2018 speech at the Brookings Institution, “The retirement crisis is a tsunami that is rapidly approaching. We can already see it and, indeed, we are starting to feel its effects. Americans are having to work past traditional retirement age. And the number of bankruptcies for those over the age of 65 has increased dramatically. The size and speed of the tsunami is likely to increase as it gets closer and closer to us. Our population is aging and the cost of medical care—an important factor for retirees—is increasing. We must address this problem before we are collectively underwater…”
“Clearly, adequately preparing for retirement is no longer an individual matter. The financial stability of our country relies on the financial security of each and every one of us. As such, we all must be invested in achieving financial security for all Americans now and in retirement,” concluded Matt.
NAGDCA provides education, information, and training in all aspects of public plan administration to support members in creating plans that enable secure retirement outcomes for their participants. NAGDCA conceived National Retirement Security Week in 2006 to spur a grassroots movement to increase awareness of the need to save adequately for retirement; the effort was extended to National Retirement Security Month in 2020. Senate resolution for the focused awareness-raising effort continues with bipartisan support annually. To learn more about NAGDCA, visit https://www.nagdca.org/.
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Robin Schoen Public Relations