As Congress reconsiders the Economic Growth and Tax Relief Reconciliation Act of 2001, most media reports fail to mention that this act has big implications on future workers’ retirement plans.
With Congress being unwilling to fix Social Security, I highly doubt it will be available when I retire. I suspect my generation will have to wait until we are 75 to retire, and that those starting work now will face an even scarier prospect. What will they live on when they get to retirement age?
We have to save for our own retirement, and the retirement savings section of EGTRRA helps us do it.
In the few years since EGTRRA became law, 5.2 million families have opened their own IRAs, and there are 12 million new participants in 401(k) programs. With or without Social Security, those folks will be able to build a reliable nest egg – unless Congress takes it away by letting that part of EGTTRA expire.
It’s up to Sen. Snowe and Congress to make the retirement savings portion of EGTTRA permanent. If they don’t, future retirees won’t have anything to fall back on.
Stavros J. Mendros, Lewiston