WASHINGTON – Congresswoman Brittany Pettersen (CO-07) and Congressman Tim Walberg (MI-05) introduced the Helping Young Americans Save for Retirement Act to help more Americans ages 18 to 20 years old access employer-sponsored retirement plans.
Currently, the Employee Retirement Income Security Act (ERISA) only requires employers who offer 401(k) plans to make the plans available to employees who are 21 years old and over. While a company can offer a 401(k) plan to their employees under 21 years old, many do not due to high costs and excessive red tape. The Helping Young Americans Save for Retirement Act will require employers to offer 401(k) plans to employees as young as 18 and will reduce regulatory burdens that price out employers from offering these retirement plans to workers under 21.
“I got my first job at an early age and worked through middle school, high school and college,” said Pettersen. “Like so many other Coloradans, planning for my future didn’t start until I was much older when I was finally offered the opportunity to save for my retirement. We have to make sure our financial regulations keep up with reality and give all employees an opportunity to build a stronger financial foundation from the start. Thank you to Congressman Walberg for joining me in this effort to help more young Americans reach their full financial potential.”
"Empowering young Americans to start saving early not only fosters financial independence but also strengthens retirement security,” said Rep. Walberg. "I want to thank Rep. Pettersen for her partnership in spearheading this bipartisan effort to build a more resilient and brighter financial future for young Americans."
A 2021 report showed that of employers who offer retirement plans, 40% of workplaces have a minimum age of 21 to participate in the plans. Employees between the ages of 18 and 21 are missing out on additional savings and three years of compound interest.
