Following the release of a report on Wednesday on the changing U.S. retirement system and maintaining financial security in retirement, U.S. Sen. Susan Collins (R-ME) committed on Wednesday to finding creative solutions to improve retirement security.
Changes to Social Security, employer-sponsored pensions or retirement savings, and individual savings — coupled with societal trends, rising debt and health care costs — have made it challenging for seniors to plan for retirement, a Government Accountability Office (GAO) report found.
Collins, the chairwoman of the Senate Aging Committee, and U.S. Sen. Bob Casey (D-PA), the ranking member of the committee, committed in a joint statement to finding solutions to challenges outlined in the GAO report.
“Nearly half of working Americans believe that they will not have enough money to live comfortably in retirement,” Collins and Casey said in a joint statement. “With an estimated $7.7 trillion gap between what Americans need to maintain their standard of living in retirement and what they have been able to save, improving retirement security is one of the top priorities of our committee.”
The report identified access to employer retirement plans, ability to accumulate adequate savings, and longevity of savings and benefits throughout retirement as key challenges to retirees remaining financially secure.
“Traditional pensions have become much less common, and individuals are increasingly responsible for planning and managing their own retirement savings accounts, such as 401(k) plans,” the GAO report said. “Yet research shows that many households are ill-equipped for this task and have little or no retirement savings.”
Going forward, the report called for Congress to establish an independent commission to undertake a comprehensive reevaluation of the U.S. retirement system. It also discussed the need for addressing how the retirement system is financed, looking at recent economic changes and new financial products.
“We are committed to creating more opportunities for hard-working Americans to put money aside and not outlive their savings,” the senators added.