EIG CONTACT: Amelia Sandhovel | [email protected]
Washington, D.C. — The Economic Innovation Group (EIG) applauds the adoption of a bipartisan resolution by the U.S. Conference of Mayors urging federal policymakers to expand access to retirement accounts and incentives to hardworking low- and middle-income American taxpayers through a new program modeled on the highly successful Thrift Savings Plan (TSP).
Sponsored by Denver Mayor Michael B. Hancock and co-sponsored by Oklahoma City Mayor David Holt, Burnsville Mayor Elizabeth Kautz, and Tempe Mayor Corey Woods, this resolution echoes bipartisan legislation in Congress to extend high-quality retirement savings plans to the millions of private-sector workers who lack access to an employer-sponsored plan, as well as to provide a tax credit that matches worker retirement plan contributions up to a certain percentage of income.
“The U.S. retirement system is failing the large share of American workers who lack both access to an employer sponsored savings plan and access to adequate tools and incentives to save–but it doesn’t need to be this way,” said EIG President and CEO John Lettieri. “EIG applauds the U.S. Conference of Mayors for their endorsement of a smart, proven approach to strengthening retirement security for tens of millions of hard working Americans and their families.”
“Experts across the political spectrum agree that there is a gap in the U.S. retirement system that must be addressed,” said Mayor Hancock. “The country’s mayors are calling for federal lawmakers to come together on a bipartisan basis to ensure hard working Americans have access to high-quality savings plans and well-designed incentives that encourage work and saving.”
Tens of millions of Americans lack sufficient retirement savings. Half of households risk taking a cut to their standard of living in retirement, and a quarter of non-retired adults have no money saved for retirement. Meanwhile, the federal government spends nearly $276 billion annually on tax benefits to incentivize retirement savings, very little of which reaches low-income workers.
The TSP has a proven record of boosting retirement plan participation and wealth generation. In 2021, EIG published a white paper by a bipartisan pair of economists, Professor Teresa Ghilarducci and Dr. Kevin Hassett, outlining a proposal to give working Americans access to a retirement program modeled after the TSP.
To learn more about how a retirement program modeled on the TSP would boost retirement security for millions of Americans, visit inclusivewealth.eig.org.
About the Economic Innovation Group (EIG)
The Economic Innovation Group (EIG) is a bipartisan public policy organization dedicated to forging a more dynamic and inclusive American economy. Headquartered in Washington, DC, EIG produces nationally-recognized research and works with policymakers to develop ideas that empower workers, entrepreneurs, and communities.