Bill Overview
Title: Retirement Savings for Americans Act of 2022
Description: This bill provides retirement savings accounts to eligible workers without employer-sponsored retirement plans. Participants' contributions are matched (up to certain thresholds) by the government through a federal income tax credit.
Sponsors: Rep. Sewell, Terri A. [D-AL-7]
Target Audience
Population: Workers worldwide without employer-sponsored retirement plans
Estimated Size: 50000000
- The bill targets individuals without employer-sponsored retirement plans.
- Globally, many developing countries do not have widespread employer-sponsored retirement plans, affecting millions of workers who would fall into this category.
- The target population may primarily consist of workers in both developed and developing nations, but the majority would be in the latter where employer-sponsored plans are less common.
Reasoning
- The policy targets a specific subset of the U.S. population, mainly those without employer-sponsored retirement plans, which amounts to approximately 50 million people.
- Given the budget constraints, the policy can't cover the full cost for all individuals with a full contribution match. Thus, it may offer either partial matches or have a cap on contributions.
- The policy is expected to provide both immediate and long-term benefits in terms of financial security, influencing the Cantril ladder of wellbeing scores positively.
- The immediate impact is anticipated to be low as retirement benefits are naturally long-term, but the psychological benefit of saving might have immediate small effects on wellbeing.
Simulated Interviews
Freelance Graphic Designer (Los Angeles, CA)
Age: 25 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- I think having retirement savings matched is an excellent idea, as freelancers like me often don't have a structured way to save.
- This policy might encourage me to save more actively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 8 |
Ride-share Driver (Houston, TX)
Age: 34 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- Saving for retirement feels impossible right now with current expenses.
- Any extra support like this would be amazing and give me some hope for the future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 7 |
Non-Profit Worker (Seattle, WA)
Age: 42 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- I appreciate that the government is recognizing the gap for those of us in non-traditional employment.
- Not sure how much I could contribute, but every bit helps.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Bartender (New York, NY)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- Retirement feels so far away, but knowing the government can match my savings makes the idea more urgent.
- This might actually get me to start thinking about saving.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Self-Employed Hair Stylist (Chicago, IL)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 4/20
Statement of Opinion:
- I've always worried about not having enough when I can't work anymore.
- Anything that helps with savings is welcome, though it feels a bit late now.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 7 |
Farm Owner (Rural Kansas)
Age: 47 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- It's hard to save with the ups and downs of farming incomes.
- A retirement savings boost would ease some pressure long-term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 7 |
Retail Worker (Phoenix, AZ)
Age: 31 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- It's hard to even think about retirement when I'm struggling with daily costs.
- Matching contributions could really influence me to set aside something.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 7 |
Factory Worker (Detroit, MI)
Age: 60 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- I'm nearing retirement but don't have much saved as jobs didn't offer plans.
- This initiative feels a bit late for me, but maybe it can help others.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 4 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
University Student (Miami, FL)
Age: 22 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- I hadn't thought much about retirement savings as it seems so far off.
- The idea of a government match is encouraging for when I start working full-time.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Gig Economy Worker (San Francisco, CA)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 3/20
Statement of Opinion:
- I really need to think about my future more seriously with something steady for when I can't work these gigs anymore.
- Retirement matching would really motivate me to start saving.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Cost Estimates
Year 1: $15000000000 (Low: $10000000000, High: $20000000000)
Year 2: $15450000000 (Low: $10300000000, High: $20600000000)
Year 3: $15913500000 (Low: $10609000000, High: $21218000000)
Year 5: $16850582500 (Low: $11287712500, High: $22575425000)
Year 10: $18988968231 (Low: $12756645487, High: $25513290975)
Year 100: $703744610299 (Low: $472488993533, High: $944977987067)
Key Considerations
- The exact match percentage and contribution limits will critically determine the budgetary impact.
- Economic conditions affecting workers' ability to contribute can significantly affect cost estimates.
- The distribution of benefits could have political and social implications, particularly around equity and fairness.