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: Sen. Hickenlooper, John W. [D-CO]
Target Audience
Population: Workers without employer-sponsored retirement plans in the US
Estimated Size: 37000000
- The bill targets workers who do not have employer-sponsored retirement plans.
- According to a survey by the US Bureau of Labor Statistics, only about 67% of private industry workers have access to retirement benefits, indicating a significant number lacking such plans.
- The provision applies to all eligible workers in the USA, thus the global target remains the same as US citizens due to the focus on US workers.
Reasoning
- The target population for this policy is US workers who lack employer-sponsored retirement plans, estimated to be around 37 million people.
- The policy aims to improve the long-term financial security of these workers by providing government-matched retirement savings accounts.
- With a budget of $15 billion for year 1 and $171 billion over 10 years, the policy must be designed to provide meaningful support while covering as many eligible workers as possible.
- The policy's impact will vary based on individual circumstances, such as income level, age, and financial literacy.
- Some workers might experience a high impact due to increased retirement savings potential, while others might have a low impact if they are unable to contribute much.
- It’s important to include a range of respondents, from those highly impacted to those not at all, as well as diverse demographics to accurately simulate the potential impact across the population.
Simulated Interviews
Freelance Graphic Designer (Texas)
Age: 35 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 15/20
Statement of Opinion:
- This policy would really help me start saving for retirement.
- Since I am self-employed and not earning regularly, the match from the government is a big incentive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 4 |
Retail Worker (California)
Age: 29 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 18/20
Statement of Opinion:
- I find it hard to save with my current wages.
- A matching contribution would motivate me to put away what little I can for retirement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Bartender (Oregon)
Age: 42 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 17/20
Statement of Opinion:
- I've never had a retirement plan before.
- This could be a real game changer for my future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 8 | 3 |
| Year 20 | 8 | 2 |
Freelancer Writer (New York)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 12/20
Statement of Opinion:
- Having a government match would be great.
- I could finally start contributing consistently to a retirement fund.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Construction Worker (Illinois)
Age: 33 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 18/20
Statement of Opinion:
- It's hard to save on my current wage, and having a matching program would make a big difference.
- I've wanted to start saving but didn't have enough encouragement or knowledge.
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 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 4 |
Part-time Café Worker (Florida)
Age: 60 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- It's quite late for me, but any help would be beneficial.
- I might be able to contribute a little more through this program.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 4 | 3 |
| Year 20 | 3 | 2 |
Startup Employee (Washington)
Age: 27 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 14/20
Statement of Opinion:
- It's hard to think about retirement when bills are endless, but matching from the government could really motivate me.
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 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Consultant without benefits (Ohio)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 10/20
Statement of Opinion:
- It's challenging to save for retirement with fluctuating income, so this would be quite advantageous.
- Finally, there's something for people like me.
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 | 6 |
| Year 20 | 8 | 5 |
Artist (Georgia)
Age: 52 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 13/20
Statement of Opinion:
- This policy would give me a chance to build up some savings without being penalized for my irregular earnings.
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 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 9 | 3 |
Gig Economy Worker (Nevada)
Age: 25 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 16/20
Statement of Opinion:
- In my line of work, I've never considered retirement planning possible.
- A policy like this might finally help me secure some savings for the future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 5 |
Cost Estimates
Year 1: $15000000000 (Low: $12000000000, High: $18000000000)
Year 2: $15500000000 (Low: $12500000000, High: $18500000000)
Year 3: $16000000000 (Low: $12800000000, High: $19000000000)
Year 5: $17000000000 (Low: $13600000000, High: $20400000000)
Year 10: $19000000000 (Low: $15200000000, High: $22800000000)
Year 100: $25000000000 (Low: $20000000000, High: $30000000000)
Key Considerations
- Magnitude of government matching contributions and their thresholds.
- Participation rates among the eligible workforce and possible underutilization.
- Long-term fiscal impact must consider future cost savings against initial investments.