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Industry Articles Home > Improving Quality of life for Seniors News

Obama proposals would help Americans save for and live in retirement
2010-02-02

President Barack Obama requested funding for separate retirement preparation initiatives, U.S. News and World Report said this week.

The White House reportedly wants more consumer protections attached to workers' 401(k) savings accounts. Transparency of 401(k) accounts would be increased, and target-date funds would be subject to increased levels of disclosure. The funds, which allocate savers' investments among various investment classes depending on their distance from retirement, are increasingly popular.

According to research firm Ibbotson Associates, the amount invested in target-date funds rose from $159 billion at the end of 2008 to $256 billion in 2009.

To incentivize increased saving, one Obama proposal would provide a $25-per-employee tax credit to firms that set up automatic Roth IRA contributions. A separate credit would be granted to small businesses that open their own retirement plan.

Another Obama proposal would allocate 8 percent more to the Social Security budget than was provided in 2010. It's hoped that benefits payments will be processed faster with the added funds.

And $103 million in the budget would go to the Administration on Aging to fund community-level senior care programs.
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