Young workers can have full-time jobs, but they don’t always get full benefits. A new bill in Congress aims to change that.
The proposed “Helping Young Americans Save for Retirement Act” would allow Americans as young as 18 to begin saving for retirement through employer-sponsored plans. Sen. Tim Kaine is backing the bill, which would lower the age at which employers are required to offer 401(k) and other retirement benefits.
Currently, many workers under 21 are not eligible for these plans, even if they are employed full time.
“There are a lot of full-timers between the ages of 18 to 21,” Kaine said. “And we think while Social Security is a really good, solid base for retirement, it’s meant as a base, not a full retirement. And the earlier we can get people in the habit of saving for retirement, the better.”
The bill aims to support young workers by removing barriers that prevent employers from offering retirement benefits to younger employees.