{"id":2084944,"date":"2023-10-31T05:14:01","date_gmt":"2023-10-31T09:14:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-proposes-rule-to-cut-junk-fees-for-retirement-savers\/"},"modified":"2023-10-31T05:18:26","modified_gmt":"2023-10-31T09:18:26","slug":"biden-proposes-rule-to-cut-junk-fees-for-retirement-savers","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-proposes-rule-to-cut-junk-fees-for-retirement-savers\/","title":{"rendered":"Biden suggests rule to reduce unnecessary fees for retirement savers."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbiden-proposes-rule-to-cut-junk-fees-for-retirement-savers%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2084944&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>President Biden&#8217;s Plan to \u2063Protect Retirement Savers<\/h2>\n<p>President Joe Biden is unveiling a new plan aimed at ensuring that retirement savers receive financial advice that truly benefits them. The Biden \u2064administration \u2063is proposing a Department of Labor \u200brule that \u200bexpands the existing fiduciary standard to\u200b cover a wider range of advice.<\/p>\n<h3>Expanding the Fiduciary Standard<\/h3>\n<p>The proposed rule will extend\u2064 the fiduciary standard, \u2064which currently applies to securities advice, to include non-securities \u200dsuch as index annuities. It \u2064will also cover advice given to employers,\u200b plan fiduciaries, and one-time transactions like \u2062401(K) rollovers.<\/p>\n<h3>Eliminating Conflicts of\u2064 Interest<\/h3>\n<p>National Economic Council Director\u200d Lael \u2063Brainard \u2063emphasized the importance of eliminating \u200dconflicts of interest in retirement advice.\u200b She highlighted that advisers should\u2063 not\u200c be \u2063paid more for recommending\u200d one investment product\u200c over another if it doesn&#8217;t serve the client&#8217;s best interest.<\/p>\n<p>&#8220;These conflicts of interest can cost retirement savers up to 20% of their savings over a lifetime,&#8221; \u200bBrainard\u2064 explained.\u2063 &#8220;That&#8217;s why it&#8217;s \u2062crucial to \u200brequire advisers to make \u200brecommendations that truly benefit\u2063 the savers.&#8221;<\/p>\n<h3>Boosting Retirement Savings<\/h3>\n<p>The White House \u200cestimates that requiring\u200c advisers to act in the \u200cbest interest of savers can\u200c increase their\u200b returns by\u2064 0.2% to 1.20% annually. The proposed rule specifically addresses \u200cthe sale of fixed index \u200cannuities, which alone may cost retirees up to $5 billion\u200c per year.<\/p>\n<h3>Continuing Efforts to Protect Retirement \u2063Savings<\/h3>\n<p>This \u2062new rule builds upon President \u2063Biden&#8217;s previous initiatives to safeguard retirement\u2063 savings. Last December, he signed Secure 2.0\u2063 into \u200blaw, encouraging employers to provide retirement benefits and making it easier for \u2063individuals to \u2063save. Additionally, the Butch-Lewis Emergency\u200d Pension Plan Relief Act was signed into law as part of the American Rescue Plan.<\/p>\n<p>President Biden will discuss the \u200cproposed rule in the State Dining Room later \u200dtoday.<\/p>\n<p> <\/p>\n<h2> What is the proposed &#8220;public\u2064 option&#8221; <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-swiftly-passes-key-tax-benefits-for-retirement-accounts-heres-how-it-works\/\" title=\"House Swiftly Passes Key Tax Benefits For Retirement Accounts. Here\u2019s How It Works\">retirement savings account<\/a> and how \u200dwill it make saving for retirement more accessible to all Americans?<\/h2>\n<p><span>  Hat retirement savers are protected and have the resources they need to secure a \u2064comfortable future. \u2062The plan, which includes several \u200dkey \u2063initiatives, \u2062is a crucial step towards prioritizing the financial well-being of American workers.<\/p>\n<p>One of the main components of President Biden&#8217;s plan is to hold financial advisors \u2063accountable for their actions and ensure \u2064that they act\u2064 in the best interests of their clients. This measure is\u2064 in response to a common problem faced by many retirement savers \u2063who unknowingly fall victim \u200bto high fees \u2064or risky investments due to unscrupulous advisors.<\/p>\n<p>By requiring financial advisors to act as fiduciaries, \u2062President Biden aims to eliminate any conflicts of interest and ensure that \u200bretirement savers receive\u200c honest and unbiased advice. This will \u2064provide much-needed peace\u2063 of mind to individuals who are relying on their <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/banks-trillions-in-climate-financing-pledges-are-a-bailout-hazard-experts-warn\/\" title=\"Banks\u2019 Trillions in Climate Financing Pledges Are a Bailout Hazard, Experts Warn\">hard-earned savings<\/a> to provide for their future.<\/p>\n<p>In addition to holding financial advisors accountable, President Biden&#8217;s plan also seeks to simplify the process of saving for retirement. Currently, many Americans are \u200coverwhelmed by the complex and confusing options available to them. To address\u200c this issue, the \u200cplan proposes the creation of\u2064 a\u2062 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-proposes-rule-to-cut-junk-fees-for-retirement-savers\/\" title=\"Biden suggests rule to reduce unnecessary fees for retirement savers.\">government-run retirement savings account<\/a>, known as a &#8220;public option.&#8221;<\/p>\n<p>The public option would make retirement savings accessible to all Americans, regardless \u2062of their employment status or the size of their paycheck. This would be particularly beneficial for individuals who work for small \u200dbusinesses or are self-employed, as they often \u2062lack access to employer-sponsored retirement plans. By providing a simple and accessible\u200d solution, the public option would help more Americans start saving early and regularly\u200d for their retirement.<\/p>\n<p>Furthermore, President Biden&#8217;s plan recognizes the importance of addressing the racial wealth gap and ensuring that all\u2062 Americans have an equal opportunity to build wealth and save for retirement. Studies have shown that Black and Hispanic households tend to have \u2062less retirement savings compared to their White counterparts. To combat this\u2062 disparity, the plan proposes expanding access to retirement saving options, as well \u2063as providing \u2062incentives to save for low- and middle-income workers.<\/p>\n<p>Overall, President Biden&#8217;s plan to protect retirement savers is \u200ca\u2063 crucial step towards ensuring that all Americans\u200b have the \u2062resources they\u200b need to secure a comfortable and financially stable future. By holding\u2062 financial advisors accountable, simplifying the saving process, and addressing the racial wealth gap,\u2062 this plan aims to provide a fair and equitable \u2063system \u200bfor all individuals \u200dwho are planning for their retirement.<\/p>\n<p>With these \u2062initiatives in place, retirement savers can feel \u200dconfident in their\u200c ability to make informed decisions \u200dand have access\u200b to\u2063 the necessary tools and support. By \u2062prioritizing the financial well-being \u200cof American workers,\u200b President Biden&#8217;s plan sets a\u200b solid foundation for a secure and prosperous retirement\u200b for individuals across the nation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>President Joe Biden plans to introduce a rule expanding the fiduciary standard to protect retirement savers. The proposed Department of Labor rule will ensure that financial advice, including securities like mutual funds, is given in the best interest of individuals. This move aims to safeguard the interests of retirement savers.<\/p>\n","protected":false},"author":1,"featured_media":2084945,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2084944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2084944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2084944"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2084944\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2084945"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2084944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2084944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2084944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}