Latest news with #NancyLeaMond
Yahoo
24-04-2025
- Business
- Yahoo
'Auto-IRA' enrollment passes 1 million. What to know about the retirement savings boom.
More than one million private-sector workers have enrolled in state 'auto-IRA' retirement savings accounts, program data shows, a milestone in the effort to boost 401(k) and IRA savings in the United States. Policymakers have struggled for years to get more Americans to save for retirement. The main tools are the 401(k) employee retirement plan and its personal-savings counterpart, the Individual Retirement Account. Both offer tax breaks as an incentive to save. But the retirement savings campaign has been only partly successful. Participation in 401(k) and IRA retirement savings has been slow to rise, and wealthier Americans are far more likely than middle- and low-income households to take part. The past year has brought some good tidings for the future of retirement savings. The participation rate in 401(k)-type plans finally reached 50% for private-sector workers in 2024. And access to those plans reached 70%, according to Bureau of Labor Statistics data. Retirement experts ascribe much of the progress to evolving strategies that encourage more workers to save for retirement. One key initiative is 'auto-IRA' or automated savings programs, which have sprung up in states over the past several years as a safety net for workers who lack access to retirement savings. The programs offer retirement savings to those workers with automatic enrollment. Twenty states have enacted auto-IRA programs, and 11 are fully operational, according to research by Georgetown University and the AARP. Oregon, Illinois and California launched some of the first plans. As of March 2025, the total number of auto-IRA accounts tops 1 million, according to a Georgetown program tracker. Those workers have saved about $2 billion toward retirement. 'These programs show that when saving for retirement is easy and automatic, people do it,' said Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer. 'Thanks to state action, over a million Americans who were previously unable to save for retirement through their job are now doing that, though too many hardworking people are still left behind.' AARP research suggests that small businesses, in particular, struggle to offer workers access to retirement savings. At companies with fewer than 10 employees, more than three-quarters of workers lack access to retirement plans. In theory, anyone can save for retirement. In practice, however, Americans who don't have retirement savings options at work aren't likely to take the initiative on their own. 'You're 15 times more likely to save for retirement if you have the option to save at work through payroll deduction,' said Kim Olson, a senior officer at the Pew Charitable Trusts, speaking to USA TODAY in 2024. 'If you have to do this on your own, the chances are very low that you'll follow through.' Upper-income Americans are much more likely to save for retirement than their less affluent peers. At the lowest income levels, only about 13% of households held retirement accounts in 2022, according to the federal Survey of Consumer Finances. At the highest income tier, more than 90% of households held retirement accounts. Advocates say automated plans could introduce millions of lower-income Americans to retirement savings. This article originally appeared on USA TODAY: 1 million Americans have auto-IRAs. What's behind the savings boom? Sign in to access your portfolio
USA Today
23-04-2025
- Business
- USA Today
'Auto-IRA' enrollment passes 1 million. What to know about the retirement savings boom.
'Auto-IRA' enrollment passes 1 million. What to know about the retirement savings boom. Show Caption Hide Caption How are tariffs and your 401(k) retirement savings intertwined? Experts say a rise in tariffs can lead to several factors that impact your retirement savings. More than one million private-sector workers have enrolled in state 'auto-IRA' retirement savings accounts, program data shows, a milestone in the effort to boost 401(k) and IRA savings in the United States. Policymakers have struggled for years to get more Americans to save for retirement. The main tools are the 401(k) employee retirement plan and its personal-savings counterpart, the Individual Retirement Account. Both offer tax breaks as an incentive to save. But the retirement savings campaign has been only partly successful. Participation in 401(k) and IRA retirement savings has been slow to rise, and wealthier Americans are far more likely than middle- and low-income households to take part. The past year has brought some good tidings for the future of retirement savings. The participation rate in 401(k)-type plans finally reached 50% for private-sector workers in 2024. And access to those plans reached 70%, according to Bureau of Labor Statistics data. Retirement experts ascribe much of the progress to evolving strategies that encourage more workers to save for retirement. 'Auto-IRA' programs help workers without access to retirement savings One key initiative is 'auto-IRA' or automated savings programs, which have sprung up in states over the past several years as a safety net for workers who lack access to retirement savings. The programs offer retirement savings to those workers with automatic enrollment. Twenty states have enacted auto-IRA programs, and 11 are fully operational, according to research by Georgetown University and the AARP. Oregon, Illinois and California launched some of the first plans. As of March 2025, the total number of auto-IRA accounts tops 1 million, according to a Georgetown program tracker. Those workers have saved about $2 billion toward retirement. 'These programs show that when saving for retirement is easy and automatic, people do it,' said Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer. 'Thanks to state action, over a million Americans who were previously unable to save for retirement through their job are now doing that, though too many hardworking people are still left behind.' AARP research suggests that small businesses, in particular, struggle to offer workers access to retirement savings. At companies with fewer than 10 employees, more than three-quarters of workers lack access to retirement plans. Americans struggle to build retirement savings on their own In theory, anyone can save for retirement. In practice, however, Americans who don't have retirement savings options at work aren't likely to take the initiative on their own. 'You're 15 times more likely to save for retirement if you have the option to save at work through payroll deduction,' said Kim Olson, a senior officer at the Pew Charitable Trusts, speaking to USA TODAY in 2024. 'If you have to do this on your own, the chances are very low that you'll follow through.' Upper-income Americans are much more likely to save for retirement than their less affluent peers. At the lowest income levels, only about 13% of households held retirement accounts in 2022, according to the federal Survey of Consumer Finances. At the highest income tier, more than 90% of households held retirement accounts. Advocates say automated plans could introduce millions of lower-income Americans to retirement savings.
Yahoo
14-04-2025
- Business
- Yahoo
Social Security's new anti-fraud measures start Monday. Here's what you need to know
The Social Security Administration is set to implement on Monday new anti-fraud measures that have sparked widespread concern and confusion, heightened by the agency's repeated changes to one of the new policies. Social Security will now conduct an anti-fraud check on all phone applications for benefits and flag claims that could be fraudulent. Those who are flagged must verify their identity in person. The agency is also implementing a new policy barring beneficiaries from changing their direct deposit information by telephone. Spurred by Elon Musk's Department of Government Efficiency, the agency last month unveiled the two new efforts that it said were aimed at strengthening identity verification within the program. Advocates quickly slammed the measures, saying they would impede many Americans' access to their Social Security payments. Fearing they could lose the monthly payments they depend on, many Social Security beneficiaries have been rushing to their local field offices, erroneously thinking that they need to verify their identity. Others are flooding the agency's phone lines, asking questions about the new policies and demanding appointments to prove their identity. Social Security, which is undergoing a massive overhaul led by DOGE, has added to the confusion by backtracking twice on one of the policies in recent weeks. Initially, the agency said people would no longer be able to file for retirement and disability benefits over the telephone because it could not sufficiently verify applicants' identities that way. Instead, they would have to use the online 'my Social Security' website, which requires identity verification, or to come into a field office. The policy was set to take effect on March 31. But a week later, the agency announced the phone ban would apply only to those filing for retirement, survivors or family benefits – not to folks filing for disability benefits, Supplemental Security Income or Medicare. And officials pushed the start date to April 14. Then, in early April, the agency further walked back the policy, announcing that it will continue allowing applicants to file over the phone for all programs, with only those flagged over fraud concerns having to appear in person. The agency said it expects about 70,000 of the 4.5 million claims filed by phone to be flagged. 'Telephone remains a viable option to the public,' the agency said on X in announcing the latest amendment. Advocates, who are worried the policy would prevent those who are not computer savvy or able to travel to an office from receiving benefits, cheered the latest change. 'SSA's guarantee of phone access for claims is a win for older Americans,' Nancy LeaMond, executive vice president at AARP, said in a statement. The new policy barring beneficiaries from changing their direct deposit information by telephone also stems from fraud concerns. About 40% of Social Security direct deposit fraud stems from calls to Social Security to change bank information, the agency said, noting that the current protocol of asking identifying questions is no longer sufficient. Going forward, beneficiaries will have to change their bank accounts through their 'my Social Security' website or visit a local office. The rapid shifts in the policies have also left the agency's customer service representatives unclear about what to tell those who call or visit. Not all representatives received training on the new rules about claims before Social Security changed them again in early April, union officials told CNN. Representatives didn't get updated instructions on the latest changes until midday Friday and then had only a few hours to certify that they had watched the 13-minute training video, said Jessica LaPointe, president of the American Federation of Government Employees' Council 220, which represents workers in Social Security's call centers, field offices and other units. Staffers have a lot of unanswered questions and feel ill-prepared to help callers and visitors come Monday, she continued. 'Hasty and inadequate training is leaving the workforce unprepared to deal with the influx of public inquiry and demands that this will cause,' LaPointe said. Uncertainty about the new policies prompted Kevin Jochems of Broomfield, Colorado, to go to his local Social Security office last month to verify his identity so he wouldn't lose any payments. But it was so busy that the only person available to speak to him was a security guard, who told him he needed an appointment. He then called the agency but was disconnected before he received the option to get a call back. 'Even missing one monthly benefit would put me a on step to homelessness,' said Jochems, 62, who has cancer. 'It's very distressing for people in my situation.' Jochems considers himself a pretty informed person who follows the news. But he said there was a lot of misinformation about the need for beneficiaries to verify their identities, which led him to try to get the right answer directly from an agency representative. The changes have also been worrisome for some who haven't retired yet. Matt Koob, 66, who works as a health technician at a Veterans Affairs hospital in Tampa, Florida, plans to apply for benefits in August. He tried to go to his local office in late March to verify his identity so he wouldn't have any problems down the road. But he couldn't get into the office and was told to call the agency's 800 number, which he found highly irritating. 'They're telling people, 'We will want you to do it in person, but we're not going to let you in the building,'' Koob said.
CNN
14-04-2025
- Business
- CNN
Social Security's new anti-fraud measures start Monday. Here's what you need to know
The Social Security Administration is set to implement on Monday new anti-fraud measures that have sparked widespread concern and confusion, heightened by the agency's repeated changes to one of the new policies. Social Security will now conduct an anti-fraud check on all phone applications for benefits and flag claims that could be fraudulent. Those who are flagged must verify their identity in person. The agency is also implementing a new policy barring beneficiaries from changing their direct deposit information by telephone. Spurred by Elon Musk's Department of Government Efficiency, the agency last month unveiled the two new efforts that it said were aimed at strengthening identity verification within the program. Advocates quickly slammed the measures, saying they would impede many Americans' access to their Social Security payments. Fearing they could lose the monthly payments they depend on, many Social Security beneficiaries have been rushing to their local field offices, erroneously thinking that they need to verify their identity. Others are flooding the agency's phone lines, asking questions about the new policies and demanding appointments to prove their identity. Social Security, which is undergoing a massive overhaul led by DOGE, has added to the confusion by backtracking twice on one of the policies in recent weeks. Initially, the agency said people would no longer be able to file for retirement and disability benefits over the telephone because it could not sufficiently verify applicants' identities that way. Instead, they would have to use the online 'my Social Security' website, which requires identity verification, or to come into a field office. The policy was set to take effect on March 31. But a week later, the agency announced the phone ban would apply only to those filing for retirement, survivors or family benefits – not to folks filing for disability benefits, Supplemental Security Income or Medicare. And officials pushed the start date to April 14. Then, in early April, the agency further walked back the policy, announcing that it will continue allowing applicants to file over the phone for all programs, with only those flagged over fraud concerns having to appear in person. The agency said it expects about 70,000 of the 4.5 million claims filed by phone to be flagged. 'Telephone remains a viable option to the public,' the agency said on X in announcing the latest amendment. Advocates, who are worried the policy would prevent those who are not computer savvy or able to travel to an office from receiving benefits, cheered the latest change. 'SSA's guarantee of phone access for claims is a win for older Americans,' Nancy LeaMond, executive vice president at AARP, said in a statement. The new policy barring beneficiaries from changing their direct deposit information by telephone also stems from fraud concerns. About 40% of Social Security direct deposit fraud stems from calls to Social Security to change bank information, the agency said, noting that the current protocol of asking identifying questions is no longer sufficient. Going forward, beneficiaries will have to change their bank accounts through their 'my Social Security' website or visit a local office. The rapid shifts in the policies have also left the agency's customer service representatives unclear about what to tell those who call or visit. Not all representatives received training on the new rules about claims before Social Security changed them again in early April, union officials told CNN. Representatives didn't get updated instructions on the latest changes until midday Friday and then had only a few hours to certify that they had watched the 13-minute training video, said Jessica LaPointe, president of the American Federation of Government Employees' Council 220, which represents workers in Social Security's call centers, field offices and other units. Staffers have a lot of unanswered questions and feel ill-prepared to help callers and visitors come Monday, she continued. 'Hasty and inadequate training is leaving the workforce unprepared to deal with the influx of public inquiry and demands that this will cause,' LaPointe said. Uncertainty about the new policies prompted Kevin Jochems of Broomfield, Colorado, to go to his local Social Security office last month to verify his identity so he wouldn't lose any payments. But it was so busy that the only person available to speak to him was a security guard, who told him he needed an appointment. He then called the agency but was disconnected before he received the option to get a call back. 'Even missing one monthly benefit would put me a on step to homelessness,' said Jochems, 62, who has cancer. 'It's very distressing for people in my situation.' Jochems considers himself a pretty informed person who follows the news. But he said there was a lot of misinformation about the need for beneficiaries to verify their identities, which led him to try to get the right answer directly from an agency representative. The changes have also been worrisome for some who haven't retired yet. Matt Koob, 66, who works as a health technician at a Veterans Affairs hospital in Tampa, Florida, plans to apply for benefits in August. He tried to go to his local office in late March to verify his identity so he wouldn't have any problems down the road. But he couldn't get into the office and was told to call the agency's 800 number, which he found highly irritating. 'They're telling people, 'We will want you to do it in person, but we're not going to let you in the building,'' Koob said.
CNN
14-04-2025
- Business
- CNN
Social Security's new anti-fraud measures start Monday. Here's what you need to know
The Social Security Administration is set to implement on Monday new anti-fraud measures that have sparked widespread concern and confusion, heightened by the agency's repeated changes to one of the new policies. Social Security will now conduct an anti-fraud check on all phone applications for benefits and flag claims that could be fraudulent. Those who are flagged must verify their identity in person. The agency is also implementing a new policy barring beneficiaries from changing their direct deposit information by telephone. Spurred by Elon Musk's Department of Government Efficiency, the agency last month unveiled the two new efforts that it said were aimed at strengthening identity verification within the program. Advocates quickly slammed the measures, saying they would impede many Americans' access to their Social Security payments. Fearing they could lose the monthly payments they depend on, many Social Security beneficiaries have been rushing to their local field offices, erroneously thinking that they need to verify their identity. Others are flooding the agency's phone lines, asking questions about the new policies and demanding appointments to prove their identity. Social Security, which is undergoing a massive overhaul led by DOGE, has added to the confusion by backtracking twice on one of the policies in recent weeks. Initially, the agency said people would no longer be able to file for retirement and disability benefits over the telephone because it could not sufficiently verify applicants' identities that way. Instead, they would have to use the online 'my Social Security' website, which requires identity verification, or to come into a field office. The policy was set to take effect on March 31. But a week later, the agency announced the phone ban would apply only to those filing for retirement, survivors or family benefits – not to folks filing for disability benefits, Supplemental Security Income or Medicare. And officials pushed the start date to April 14. Then, in early April, the agency further walked back the policy, announcing that it will continue allowing applicants to file over the phone for all programs, with only those flagged over fraud concerns having to appear in person. The agency said it expects about 70,000 of the 4.5 million claims filed by phone to be flagged. 'Telephone remains a viable option to the public,' the agency said on X in announcing the latest amendment. Advocates, who are worried the policy would prevent those who are not computer savvy or able to travel to an office from receiving benefits, cheered the latest change. 'SSA's guarantee of phone access for claims is a win for older Americans,' Nancy LeaMond, executive vice president at AARP, said in a statement. The new policy barring beneficiaries from changing their direct deposit information by telephone also stems from fraud concerns. About 40% of Social Security direct deposit fraud stems from calls to Social Security to change bank information, the agency said, noting that the current protocol of asking identifying questions is no longer sufficient. Going forward, beneficiaries will have to change their bank accounts through their 'my Social Security' website or visit a local office. The rapid shifts in the policies have also left the agency's customer service representatives unclear about what to tell those who call or visit. Not all representatives received training on the new rules about claims before Social Security changed them again in early April, union officials told CNN. Representatives didn't get updated instructions on the latest changes until midday Friday and then had only a few hours to certify that they had watched the 13-minute training video, said Jessica LaPointe, president of the American Federation of Government Employees' Council 220, which represents workers in Social Security's call centers, field offices and other units. Staffers have a lot of unanswered questions and feel ill-prepared to help callers and visitors come Monday, she continued. 'Hasty and inadequate training is leaving the workforce unprepared to deal with the influx of public inquiry and demands that this will cause,' LaPointe said. Uncertainty about the new policies prompted Kevin Jochems of Broomfield, Colorado, to go to his local Social Security office last month to verify his identity so he wouldn't lose any payments. But it was so busy that the only person available to speak to him was a security guard, who told him he needed an appointment. He then called the agency but was disconnected before he received the option to get a call back. 'Even missing one monthly benefit would put me a on step to homelessness,' said Jochems, 62, who has cancer. 'It's very distressing for people in my situation.' Jochems considers himself a pretty informed person who follows the news. But he said there was a lot of misinformation about the need for beneficiaries to verify their identities, which led him to try to get the right answer directly from an agency representative. The changes have also been worrisome for some who haven't retired yet. Matt Koob, 66, who works as a health technician at a Veterans Affairs hospital in Tampa, Florida, plans to apply for benefits in August. He tried to go to his local office in late March to verify his identity so he wouldn't have any problems down the road. But he couldn't get into the office and was told to call the agency's 800 number, which he found highly irritating. 'They're telling people, 'We will want you to do it in person, but we're not going to let you in the building,'' Koob said.
