AARP Applauds House Introduction of Automatic IRA Bill

Millions of Americans Lack Ability to Save for Retirement in the Workplace; Bill Would Provide Access for Millions.

WASHINGTON, Aug. 11 /PRNewswire-USNewswire/ -- AARP Executive Vice President Nancy LeaMond offered the following statement in reaction to U.S. Representative Neal's introduction of the Automatic IRA Act of 2010. The bill would provide millions of Americans the opportunity to automatically save for retirement in the workplace:

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"AARP is pleased to see momentum building around helping Americans save for retirement. Representative Neal and his colleagues who cosponsored the bill – Representatives Schwartz, Blumenauer and Stark – are to be commended for their leadership on this very important issue.

"To date, both chambers of Congress have introduced legislation that would expand access to retirement savings in the workplace, giving approximately 42 million more workers an opportunity to build their own nest egg.

"The Automatic IRA proposal is a simple, low-cost and common-sense solution to the problem that too few Americans are saving for their retirement. If enacted, this legislation would give tens of millions of employees a new saving option at work through regular, automatic payroll deductions. Studies show that contributions to 401(k) accounts rise dramatically when individuals can contribute to them automatically. The proposal gives employees the choice to opt out of the savings plan, but the goal is to make saving as simple and streamlined as possible for those who wish to do so.

"AARP looks forward to working with Representative Neal to build bipartisan support for this common-sense legislation and make it easier for Americans to save for their own retirement."

For more information, please visit www.aarp.org.

About AARP

AARP is a nonprofit, nonpartisan organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world's largest-circulation magazine with over 35.1 million readers; AARP Bulletin, the go-to news source for AARP's millions of members and Americans 50+; AARP VIVA su Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

SOURCE AARP