With
much
of
the
U.S.
retirement
conversation
often
focused
on
the
increasing
challenges
of
maintaining
a
quality
of
living
into
older
age,

a
law
passed
by
Congress
in
2022
could
be
a
positive
sign.

The
Securing
a
Strong
Retirement
Act
of
2022,
known
by
its
moniker
“SECURE
2.0,”
includes
provisions
including
automatic
enrollment
of
more
workers
into
retirement
savings
plans,
matching
certain
student
loan
payments
in
a
401(k)
plan
and
tweaks
to
required
minimum
distributions
(RMDs)
in
existing
retirement
plans.

“[A]s
pensions
become
rarer
and
Social
Security
benefits
lose
purchasing
power,
SECURE
2.0
could
be
the
foundation
modern
workers
need
to
save
for
retirement
while
covering
their
everyday
expenses,”
according
to

an
overview
of
the
law
published
by
personal
finance
website

Money.

The
automatic
enrollment
provision
could
have
a
notable
impact
on
U.S.
retirement.
While
not
expected
to
kick
in
until
the
final
day
of
the
year,
“most
new
401(k)
and
403(b)
plans
will
automatically
enroll
employees
unless
they
opt
out,”
the
overview
explained.
“This
is
expected
to
drastically
expand
the
number
of
people
enrolled
in
employer
retirement
plans.”

Starting
this
year,
borrowers
of
certain
qualifying
student
loans
can
have
those
payments
matched
in
a
401(k)
or
403(b)
account
by
their
employer.
This
provision
is
not
a
requirement
but
could
assist
those
aiming
to
establish
a
more
secure
retirement
in
the
future.

“Instead
of
matching
workers’
contributions
to
retirement
accounts,
participating
employers
match
the
same
amount
of
money
that
workers
pay
toward
their
student
loans,”
the
overview
said.
“All
workers
have
to
do
is
make
sure
they
opt
for
the
new
benefit
(if
applicable)
and
make
timely
payments.”

Those
with
tax-deferred
retirement
accounts
who
must
make
RMDs
—
annual
withdrawal
thresholds
—
will
also
see
the
starting
age
for
RMDs
rise
from
72
to
73
this
year.
By
2033,
that
age
will
rise
again
to
75.

“The
law
also
reduced
the
penalty
for
not
withdrawing
the
required
minimum
from
50%
to
25%
of
an
account
holder’s
RMD
(and,
if
corrected
within
two
years,
to
10%),”
Money
said.

Retirement
challenges
persist,
however.
Recent
data
shows
that
older
Americans
are
at
risk
of

becoming
their
adult
children’s
biggest
expense,
and
a
January
survey
from

AARP
shows
that
over

60%
of
seniors
have
not
sought
out
retirement
advice
from
a
financial
professional
due
to
trust
issues.

Generation
X’s
savings
levels
will

fall
short
of
what
is
required
according
to
recent
data
from

Schroders.
Observers
and
aging
advocates
continue
to
detail
why

aging
in
place
could
be
an
important
element
for
stabilizing
retirement
finances.

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