Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Taxes Congress

New retirement law offers opportunities for savings (Photo by Celal Gunes/Anadolu Agency via Getty Images)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

Jan 11, 2023

Retirement Plans Are About To Change 

New changes in retirement law could see some significant benefits to how much Americans save toward their future. 

Key Details

  • President Joe Biden has signed a $1.7-trillion spending bill passed by Congress on December 23. As part of it, the bipartisan supported retirement savings legislation Secure 2.0 Act will be signed into law. The act passed the House of Representatives on March 29 with broad support. 
  • Secure 2.0 provides numerous changes to retirement law, and provides multiple benefits to workers and retirees, including improvements to retirement savings accounts, improvements to 401K and 403K plans, lower the cost for employers, and helps people save more. 
  • The act signed 90 new provisions into law. 
  • Subsequent retirement legislation is already in the works as well, with the Retirement Savings for Americans Act of 2022 being sponsored by Representative Terri A. Sewell (D-AL) on December 8—which introduces the idea of a federal retirement plan for workers who don’t have employer provided plans. 

Why it’s News 

The U.S. has an underserved retirement system, with the average American holding far less in their retirement accounts than they should. Investment giant Vanguard estimates the median savings for an average American is $87,725 for those 65 and older. In a highly inflationary market, this will devalue savings over time, especially as unexpected expenses arise. 

“Secure 2.0 will make it easier for millions of Americans to stash more cash in their workplace retirement plans. It will also help middle- and lower-income workers who may not be able to save much by providing them with a new benefit that amounts to a savings contribution—up to $1,000 per person. Finally, it will make it easier for part-time workers to enroll in an employer’s retirement plan by requiring plans to automatically enroll workers unless they opt-out,” says MarketWatch. 

The bill will only affect some, particularly those who already do not have a retirement plan. But it will create new opportunities, notably for near-retirees. As Vanguard head of advice methodology Joel Dickson notes, “On the edges, [the changes] do present a lot of retirement-planning opportunities that near-retirees would want to be aware of.”

“Beginning January 1, 2025, individuals ages 60 through 63 will be allowed to make catch-up contributions to their workplace plan of up to $10,000—or 150% of the regular contribution, whichever is greater—and that amount will be indexed to inflation,” says CNBC. 

IRAs will similarly be indexed to inflation and see yearly increases starting in 2024. Employer contributions will also be given the option of being designated as Roth contributions, which changes their tax requirements. The required distribution age will also be raised to 75 by 2033. 

BACKING UP A BIT

Congressional leaders filed the main 4,155-page, $1.7-trillion bill Tuesday morning, December 20, expecting legislators to vote on it two days later, December 22. These saving and retirement provisions were included in that bill, which the president ended up signing on December 23.

The bill boosts defense by $858 billion, bolsters police spending, provides $45 billion in Ukrainian aid and NATO funds, $41 billion in disaster relief, and increases funding to the CHIPS Act with an additional $1.8 billion.

It also bans the TikTok app on government devices, boosts inflation relief, and adjusts the electoral college procedure, preventing a Vice President from throwing out votes. It also aimed to support Title 42, which the Supreme Court upheld just days later.

“The Title 42 policy, first rolled out by the Trump administration as COVID-19 was starting to spread, is believed to have acted as a deterrent for some migrants seeking asylum because they could be turned back even if they asked for protection in the U.S.,” says The Journal.

Home / News / Retirement Plans Are About To Change 
Share
FacebookTweetEmailLinkedIn

Related Stories

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
Markets

Oct 23, 2023

Chevron Gas Deal

Chevron is acquiring Hess Corp. for $53 billion, the second significant oil producer acquisition this month as crude prices climb.

Key Details

  • Chevron is purchasing Hess in an all-cash deal worth $53 billion, including debt and preferred stock redemption.
  • This comes just weeks after ExxonMobil announced its $59.5 billion purchase of Pioneer Natural Resources.
  • With oil over $80 per barrel, major producers are using their windfall profits to acquire smaller players and boost payouts to shareholders.
  • Chevron expects the deal to close in H1 2023 pending regulatory approvals and Hess shareholder vote.
  • Hess CEO John Hess will join Chevron's board once the acquisition is complete.

Go deeper

FacebookTweetEmailLinkedIn
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff
netflix building
Entertainment

Oct 19, 2023

Netflix Hiking Prices While Adding Millions of Subscribers

by Colin Baker Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com