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Obama Initiates Moves To Expand Retirement Savings

Update Date: Jan 27, 2016 10:34 AM EST
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As his term comes to a close this year, President Barack Obama is pitching in his employer-sponsored retirement proposal that would form part of his upcoming budget measures which he hopes could help 30 million American workers save for retirement.

His proposed plan on retirement is a component of a larger economic security agenda the president outlined when he delivered his last State of the Union before the joint congress.

"For Americans short of retirement, basic benefits should be just as mobile as everything else is today. Even if he's going from job to job, he should still be able to save for retirement and take his savings with him," the President told the US lawmakers as quoted by USA Today.

The White House-drafted spending plan shall be presented to the Republican-controlled Congress to inform legislators of the political priorities of the administration. While Obama expressed optimism that Congress would reasonably and favorably accommodate his agenda, some pundits believe that his measures will be turned down in a political system that has become polarized over the years.

Obama's 2017 proposed budget plan to the Congress includes the following elements as stated in an article published in Christian Science Monitor:

  • Giving tax credit of $3, 000 for small business that automatically enroll their workers in a retirement scheme similar to 401K.
  • Funding a $100 million grant proposal to finding creative ways of providing a portable and accessible benefits for self-employed, part-timers, freelancers, and workers with multiple employers.
  • Starting a program to help states come up with their own unique retirement schemes.

"The president's proposal will give 30 million additional Americans access to retirement savings accounts at their workplace, in a much needed step to a more portable retirement system that adapts to today's economic realities," remarked Jeff Zients, director of the president's National Economic Council, as mentioned in a report by The Wall Street Journal.

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