Saving for retirement just got easier

RENO, Nev. (KOLO) - For those who believe Social Security will get them through their retirement, think again.

“When social security came out it was meant to provide approximately 40% of your retirement income,” says Richard Jay,

Jay says the Secure 2.0 Act of 2022, just might the be answer for employees who want to save but have trouble doing so.

The Act will require most employers to offer a retirement program. Employees will automatically be enrolled, unless they opt out. Initially 3% of their paycheck will be put into an account. That will increase 1% per year, until a total of 10% of the paycheck will be devoted to retirement.

That money will follow the employee should they change jobs. A data base is being set up to find that employee and hook him up to his money if a former boss loses track of him.

For those worried about their money and what could happen to it on the stock market, Jay says retirement plans will not have to be invested that way. It’s up to the employee. “The investment within a 401k are stocks, bonds, cash guaranteed funds, and other things,” says Jay.

“An employee does not have to go all in into the stock market. If they want to go into a stable value fund, which is a low rate of return but no risk to it. They can go into a money market.” There are a still lot of unanswered questions though.

That’s because the act has more than 100 provisions in it which need to be ironed out. Smaller businesses may not have to participate.

But change is coming in the year and years to come which will alter the way we save for the golden years.

“10 or 20 years from now I see a lot more people with retirement plans,” says Jay. “I see a lot more people not having to rely on social security alone. And I see a lot more people saying I’m glad I did it.”

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