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.