In today’s economy, the American dream feels out of reach for millions of hardworking families. Structural challenges that favor the wealthy have compounded for decades, making financial success hard to achieve or maintain for some low-income and middle-class families. From health care to housing, many Americans are struggling to stay afloat and afford basic necessities. They’re also struggling to plan for the future. The fear of a lifetime of financial insecurity lingers, making a peaceful retirement seem more like a wish than a guarantee.
The very people who keep our economy running—service workers, gig workers, and small business employees—are the ones left behind by the current retirement system. Tragically, the burden of this insecurity falls heaviest on those who can least afford it.
Over 40% of all full-time working Americans lack access to any employer-sponsored retirement plan. The disparity in access to retirement savings is staggering— 3 out of 4 full-time workers in the lowest-earning decile don’t have a retirement plan through their job.
Even more troubling is that less than 1% of the $200 billion in annual tax benefits for retirement savings goes to the bottom 20% of income earners. For households nearing retirement age, the outlook is bleak: only 1 in 10 low-income families have any savings at all.
Without change, millions of Americans will face an uncertain future that doesn’t include a dignified and well-deserved retirement.
Luckily, change is possible and this year it’s just within reach.
Vice President Kamala Harris is fighting to give American citizens the economy they deserve. She recognizes that our lives are more than just work and that change is needed for low- and middle-class income citizens to experience life to the fullest. Her vision, the opportunity economy, will give all Americans a chance to succeed and thrive.
The success of this vision will be strengthened by financial policy that prioritizes all Americans – not parties, not corporations, and not just the wealthy. The Retirement Savings for Americans Act (RSAA) fits this description.
This bipartisan bill, introduced by Senators John Hickenlooper (D-CO) and Thom Tillis (R-NC), alongside Representatives Lloyd Smucker (R-PA) and Terri Sewell (D-AL), offers a solution that transcends party lines. In fact, the RSAA represents one of the rare moments of consensus on Capitol Hill during an otherwise divisive time.
The RSAA seeks to extend retirement security to private sector workers who lack access to workplace retirement benefits by providing them with low-fee, tax-advantaged retirement accounts. The benefits of the RSAA are targeted to low- and moderate-income workers who are most likely to be left out of the current system. Workers making less than the median income would be eligible to receive a matching contribution of up to 5% of their income – a meaningful incentive to build their nest egg and retire with security.
The bill is a lifeline for the millions of workers who deserve a secure future after years of hard work. It’s a promise to our senior citizens that they will be able to enjoy the fruits of their labor. It’s an affirmation to Americans everywhere that this nation is for them and that success here is possible.
Innovative, forward-looking policy such as this is what our nation so desperately needs to see more of and will see more of with Vice President Harris in office. It’s my hope that democratic leaders will continue to champion legislation that serves all Americans – and that their work will be bolstered by a Harris administration.
Now is the time to enact this change. The next four years hold hope. Congress must work with Vice President Harris to prioritize solutions that put the economic well-being of everyday Americans front and center. The RSAA offers a clear, bipartisan path forward, right when the nation needs it most.
Bakari Sellers, a political analyst on CNN and Democratic surrogate, served as a Democrat in the South Carolina House of Representatives for the 90th District from 2006 to 2014, becoming the youngest African American elected official in U.S. history at the age of 22.
Read Full Article »