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Obama Offers New Options for Retirement Savings

Americans can have tax refunds sent as savings bonds

By the Associated Press

Posted Sep 5, 2009 7:07 AM CDT

(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.

[Images (3)]

[Quotes (1)]

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. (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. (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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Obama Offers New Options for Retirement Savings