Mercer, a global consulting leader in advancing health, wealth and careers, and a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), today announced a whitepaper outlining policy recommendations aimed at addressing and resolving America’s retirement security challenge. As Congress considers retirement issues as part of tax reform, the paper offers guidance on how to develop a coherent public policy strategy that helps citizens adequately prepare for retirement given longer life expectancies and lack of financial knowledge, among other factors.
“The retirement savings gap is growing daily and needs to be addressed urgently with public and private sectors’ participation. Possible actions like Rothification of 401ks need to be considered carefully to avoid unintended consequences.” said Jacques Goulet, President of Mercer’s Wealth & Health businesses. “Americans are facing many issues that challenge their ability to save for retirement: longer life spans, insufficient savings and lack of sufficient financial knowledge are issues which need to be addressed. Limited access to workplace plans also serves as a barrier to savings. We predict these factors will cause the gap to increase significantly over the coming years if not properly addressed.”
Steps to Address America’s Retirement Security Challenge: A Public Policy Point of View is based on Mercer’s experience working with thousands of US employers. The paper offers several specific policy recommendations, including:
Support retirement security through tax policy
Improve access to retirement plans for more Americans via the workplace
Build on the success of the private retirement system
Remove impediments to employers for maintaining defined benefit pension plans
“America’s retirement savings issues won’t be resolved overnight or resolved easily. But the longer we wait to address these issues, the more drastic future actions will need to be,” said Tom Murphy, US Wealth Leader, Mercer. “Failure to update policies strategically and quickly will create a scenario where many workers will see their retirement expectations diminish. They will be compelled to rely more on Social Security and other government programs that are themselves financially overextended. The end goal is to help more American workers retire with confidence and the time to act is now.”
Steps to Address America’s Retirement Security Challenge: A Public Policy Point of View can be found here.
Mercer experts will discuss the prospects and possible impact of tax reform during a live web briefing on Friday, Nov. 17, from 1-2 pm ET. Registration for the webcast can be found here.
Mercer delivers advice and technology-driven solutions that help organizations meet the health, wealth and career needs of a changing workforce. Mercer’s more than 22,000 employees are based in 43 countries and the firm operates in over 130 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With more than 60,000 colleagues and annual revenue over $13 billion, through its market-leading companies including Marsh, Guy Carpenter and Oliver Wyman, Marsh & McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit www.mercer.com. Follow Mercer on Twitter @Mercer.