New Retirement Bill in Congress Looks to Shake Things Up

https://www.financialsense.com/blog/19185/new-retirement-bill-congress-looks-shake-things

A new bill before Congress—named the Setting Every Community Up for Retirement and Enhancement or SECURE Act—is likely to change options for investors as they prepare for retirement. In a recent Lifetime Income podcast Jim Puplava explained how things are changing and what it means for retirement planning.

What’s New?

The SECURE Act makes several changes to retirement investment regulations. One of the largest changes is that the act will allow 401(k) style plans to offer annuities. They’re a type of insurance contract that guarantees a monthly income stream for the retirees’ life.
This allows employers to incorporate a feature similar tot those found in old-fashioned pension plans called defined-benefit plans, which were basically annuities in their operation. Effectively, retirees and their spouses could have access to a guaranteed source of income directly in their 401(k) when they stop working. This is beneficial in today’s low interest rate environment and without it retirees have to rely on what they receive in their 401(k) to produce income in retirement.