U.S. investors oppose federal initiatives that would force them to give up control over their 401(k) accounts, the Investment Company Institute (ICI) said.
Seven in 10 U.S. households object to the idea of the government requiring retirees to convert part of their savings into annuities guaranteeing a steady payment for life, according to an institute-funded report today.
The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort.
The institute's member companies manage $11.6 trillion of assets in mutual funds, including employer-sponsored 401(k) accounts. Some lawmakers have questioned the public-policy value of the tax benefits for people investing in retirement accounts, the ICI said in a report today.
In Argentina, $29B was seized this way, then immediately used to pay down debt, not saved, using the same gimmick as the US Federal Insurance Contributions Act (FICA) money paid by employees, that was supposed to go for their Social Security, but was immediately spent. In this case, the "promise" is that substantial interest or losses will be replaced with a fixed 2-3% interest for retirement savings. |