Buchanan bill would help Americans save for retirement

Florida Congressman Vern Buchanan, R-Sarasota, on Friday introduced bipartisan legislation to make it easier for small businesses to offer retirement benefits to employees.

Buchanan’s Retirement Security for American Workers Act would make it less costly for small businesses to set up retirement plans. According to the Employee Benefits Research Institute, as many as 76 million people work for companies that don’t offer retirement benefits.

“Too many hardworking Americans enter retirement without enough savings,” said Buchanan, who last month was named chairman of the House Ways and Means Oversight Subcommittee. “We should be doing all we can to help people prepare for their golden years and invest in their future.”

Buchanan’s bill is co-sponsored by Rep. Rich Neal, D-Mass., the top Democrat on the House Ways and Means Committee, as well as Reps. Ron Kind, D-Wis. and Jim Renacci, R-Ohio.

The Retirement Security for American Workers Act would let businesses join together in “multiple employer plans” to share the administrative burden and costs of offering a retirement plan.

One-third of Americans report they have no retirement savings, according to a 2016 report by GoBankingRates. Buchanan introduced the bill since millions of American employees would stand to benefit from expanding the availability of workplace retirement plans.

According to AARP, workers are 15 times more likely to save when they have access to a retirement plan.

“It’s clear that people need better access to retirement savings,” Buchanan said. “Congress should approve this bipartisan legislation so retirees can be more financially stable.”

Buchanan previously introduced a version of the bill in December 2016.

This story was originally published February 3, 2017 at 3:13 PM with the headline "Buchanan bill would help Americans save for retirement."