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WEDNESDAY, NOVEMBER 25, 2009
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22

Obama Offers New Options for Retirement Savings

Americans can have tax refunds sent as savings bonds

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(AP) – President Obama used his radio address today to roll out several initiatives aimed at making it easier for Americans to save for retirement. One move will allow people to have their federal tax refunds sent as savings bonds by checking a box on their tax return; another has workers automatically enrolled in employer-run savings programs unless they choose to opt out, rather than having to take action to opt in.

The new federal steps, which do not require congressional action, also include:

  • Allowing 401(k)s to automatically increase the amount that workers save over time, unless the workers object.
  • Allowing workers, when leaving a job, to direct unused vacation pay to a retirement savings account rather than taking it in cash.

President Barack Obama walks on the South Lawn of the White House in Washington as he departs for the Camp David presidential retreat, Wednesday, Sept. 2, 2009.
President Barack Obama walks on the South Lawn of the White House in Washington as he departs for the Camp David presidential retreat, Wednesday, Sept. 2, 2009.   (Charles Dharapak)
President Barack Obama waves as he walks across the South Lawn of the White House prior to his departure on Marine One helicopter in Washington, Wednesday, Sept. 2, 2009.
President Barack Obama waves as he walks across the South Lawn of the White House prior to his departure on Marine One helicopter in Washington, Wednesday, Sept. 2, 2009.   (AP Photo/Pablo Martinez Monsivais)
President Barack Obama makes statements about the economy and H1N1 swine flu virus in the Rose Garden of the White House in Washington, Tuesday, Sept. 1, 2009.
President Barack Obama makes statements about the economy and H1N1 swine flu virus in the Rose Garden of the White House in Washington, Tuesday, Sept. 1, 2009.   (AP Photo/Charles Dharapak)
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We know that automatic enrollment has made a big difference in participation rates by making it simpler for workers to save. That's why we're going to expand it to more people. - President Obama

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22 comments
VIEWING:
 
0001tr
Sep 5, 09 7:38 AM CDT
COUPONS....this is brilliant Reply
Vote up! Vote down!
-6
NovThird2010
Sep 5, 09 7:50 AM CDT
Goin' down, down, down...This man is bizarre and clueless. How's that "hopey, changey" thing working for you? Pray that he resigns b/f he destroys this country with his community organizer mentality. Has this man ever held an actual job? Reply
Vote up! Vote down!
-5
IN RESPONSE:
Fondue
Sep 5, 09 8:17 AM CDT
If only there were a way for you to opt out.
Vote up! Vote down!
-2
IN RESPONSE:
nick
Sep 5, 09 8:44 AM CDT
Contrast Obama's plan to the plan of the previous Republican President. George W. Bush's retirement plan included revising Social Security savings accounts by redirecting a portion of SS deductions (perhaps as much as 50%) to investing in the stock market. That would have guaranteed hugh losses to hard working middle Americans and hugh profits for Wall Street firms. I'm curious: How would Bush's well-thought out plan have turned out for your current retirement portfolios, you Republican Obama nay sayers?
Vote up! Vote down!
+8
IN RESPONSE:
carol
Sep 5, 09 9:04 AM CDT
Bush's Social Security plan was optional. One has to recall at the time he was pushing this, the stock market was doing great. Social Security and Medicare are in financial trouble and I bet both will have to be addressed in a few years. This is one of the main reasons why so many are opposing this new healthcare plan. Who is going to pay for it?
Vote up! Vote down!
+2

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Barack Obama • retirement • savings • tax refunds • retirement benefits • 401(k) plans • radio address

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