As the baby-boom generation reaches retirement, our nation must be ready to address the needs of our seniors. Unfortunately, a faltering economy has cost many retirees and soon-to-be retirees a significant portion of their retirement savings. As Congress works to rebuild our financial markets, we must ensure that our safety-net programs remain strong.
|Congressman Yarmuth meets with a constituent in Louisville|
One of the biggest challenges facing the country is the long-term solvency of Social Security. This safety-net program prevents millions of Americans from slipping below the poverty line, protecting more than 1,825,000 workers across the Commonwealth of Kentucky. According to the Congressional Budget Office, we have enough revenue to pay full Social Security benefits through 2052. While this gives Congress time to find a solution, we must begin work immediately on this important issue to ensure that we protect and strengthen this critical safety net for all generations.
In addition to Social Security, we must explore policies to expand savings under other types of retirement accounts, such as individual retirement accounts (IRAs) and employer-sponsored 401(k) plans. These accounts create an incentive for workers to save, allowing them to make tax-free contributions to the plans for use when they retire. I believe we should give Americans more flexibility over their plans, increase incentives for saving, and provide greater transparency of fees so consumers can make informed decisions when planning for retirement.
How we care for our seniors is a measure of who we are as a nation. After a lifetime of work, our seniors should have the peace of mind that comes with knowing they have a secure and safe retirement.