Every year, an increasing number of seniors retire. Many low-income workers find that they have little income to rely on once they retire, and many have no savings at all. They will be almost dependent on Social Security—which is not enough. A bill now in Congress called the Retirement Savings for Americans Act (RSAA)—when it passes, will help many Americans have a more stable and comfortable retirement.

Automatic Enrollment

The RSAA will require employers of low-income workers (full-time and part-time) to automatically enroll their employees in the plan at 3 percent of their income. Employees would have the ability to increase or decrease this amount, or they may even be able to stop contributions when they want.

Rep. Lloyd Smucker (R-Pa.), who introduced the bill to the House, says the program would also make employees eligible to get a 1 percent contribution automatically from the federal government. It will be a matching contribution of up to 4 percent, given through a refundable federal tax credit.

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