In recent decades, U.S. policymakers have introduced various incentives to expand retirement plan coverage among small businesses, including the Section 45E tax credit that subsidizes the costs of starting and administering employer-sponsored retirement plans like 401(k)s. Originally enacted in the early 2000s and substantially expanded through the SECURE Acts of 2019 and 2022, this credit aims to lower cost barriers for smaller firms. However, despite these expansions, fewer than 6% of eligible firms claim the credit. This latest CRI working paper, cross-published by NBER, uses detailed data from the IRS and other sources to examine how firms respond to these tax incentives, finding that credit take-up depends heavily on firm owner characteristics and their tax preparers. As policymakers continue to consider such tax incentives, they need to better understand how these incentives are perceived and whether they are used by their intended beneficiaries.

Moderator:

• Angela Antonelli, Research Professor and Executive Director, Center for Retirement Initiatives

Panelists:

• Adam Bloomfield, Non-Resident Scholar, Georgetown University Center for Retirement Initiatives
• Stephanie Liu Cossart, Principal Product Manager, Gusto
• Kendra Isaacson, Principal, Mindset
• Sita Slavov, Professor, Schar School of Policy and Government, George Mason University

Two new CRI reports examine the role of private assets in defined contribution retirement plans. The first report addresses three common myths about private assets in defined contribution (DC) retirement plans — limited liquidity, lack of excess returns, and high fees — that hinder their broader adoption by DC retirement plans. The second report is a follow-up to previous CRI research, and shows how relatively modest exposures to real assets, private credit, and private equity can improve retirement income outcomes by 7% to 8% for workers with disrupted savings patterns, such as caregivers, lower-income workers, and job hoppers. This research suggests policymakers should support the ability of plan sponsors to consider all tools, including private market allocations, to improve retirement income outcomes for millions of American workers.

Moderator:

• Angela Antonelli, Research Professor and Executive Director, Center for Retirement Initiatives

Panelists:

• Deb Boyden, Head of U.S. Defined Contribution, Schroders
• Will Hansen, Chief Government Affairs Officers, American Retirement Association
• David O’Meara, Head of DC Investment Strategy, WTW
• Kevin Walsh, Principal, Groom Law Group

A new CRI Working Paper examines the impact of Social Security claiming timing on older adults’ financial outcomes by constructing an Optimization Failure (OF) index, which measures the difference between optimal and observed claim timing. The authors – Zeewen Lee, Ph.D. and CRI Non-Resident Scholar Manita Rao, Ph.D. – find that sub-optimal claiming is associated with a decline in real estate and total wealth but also improves cash flow after claiming.  They also find that these outcomes are more prominent among those who claim early when compared with those who claim late.

Watch this one-hour webinar to learn more about the latest research and hear from experts about the importance of Social Security claiming timing, how Social Security and private retirement savings work together, and the impact of decisions on overall retirement readiness and financial well-being.

Moderator:

• Angela Antonelli, Research Professor and Executive Director, Center for Retirement Initiatives, Georgetown University’s McCourt School of Public Policy

Panelists:

• Craig Copeland, Ph.D., Director, Wealth Benefits Research, Employee Benefit Research Institute (EBRI).
• Joel Eskovitz, Director, Social Security and Savings, AARP Public Policy Institute
• Mary Beth Franklin, Founder, RetirePro, and Certified Financial Planner
• Manita Rao, Ph.D., Senior Advisor, AARP Public Policy Institute; and Non-Resident Scholar, Georgetown University Center for Retirement Initiatives
• Sita Slavov, Ph.D., Professor of Public Policy, George Mason University

A new CRI research report reveals significant gaps that remain in retirement plan access and the potential of state-facilitated programs to reach and benefit millions of Americans.(Report and State-by-State Interactive Map). The report also examines the combined effect of direct program participation and induced new private retirement plan formation in three of the early program adopter states.

Watch this one-hour webinar to learn more about this updated analysis of who lacks access to retirement saving plans in the United States, and the progress and potential of state programs, including an increase in the adoption of new employer-sponsored retirement plans.

Moderator:

• Angela Antonelli, Research Professor and Executive Director, Center for Retirement Initiatives, Georgetown University’s McCourt School of Public Policy

Panelists:

• Adam Bloomfield, Ph.D., Non-Resident Scholar, Georgetown University Center for Retirement Initiatives
• Fernando Diaz, Deputy Treasurer, Office of the Illinois State Treasurer and the Illinois Secure Choice Retirement Savings Program
• Ethan Conner-Ross, Executive Vice President and Principal, Econsult Solutions Inc.
• Will Hansen, Chief Government Affairs Officer, American Retirement Association
• William Railey, Executive Director, Colorado SecureSavings Program