The bill has the potential to solve some of retirement problems facing American workers — including their lack of retirement readiness.
To be sure, Secure 2.0 has yet to pass the Senate, but the plan so far has garnered support from both Democrats and Republicans as well as retirement experts and advocacy groups like the American Society of Pension Professionals & Actuaries.
Under the proposal, workers would initially automatically contribute at least 3% of their wages into their employer retirement plans. Each year after that, the contribution amount would increase by 1 percentage point, capping at 10%. Employees could opt out of contributions, and current retirement plans are grandfathered in, according to a House Ways and Means Committee summary of the bill.
"When you are 50, you may still be putting kids into college, and that takes way our ability to invest into future retirement," he noted. One of the biggest changes would be to the law regarding required minimum distributions, or RMDs, which is the amount of money that retirees are mandated to withdraw each year.
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