Retirement Planning: Transitioning to SECURE 2.0

Retirement Planning: Transitioning to SECURE 2.0
September 19, 2023 10 mins

Retirement Planning: Transitioning to SECURE 2.0

Retirement Planning: Transitioning to SECURE 2.0 Hero Banner

SECURE 2.0 is changing retirement planning for businesses and employees. Strategic decisions will be critical in building sustainable retirement plans.

Key Takeaways
  1. SECURE 2.0 is calling for business leaders to make decisions about their 401(k) and 403(b) structures for the short- and long-term.
  2. In implementing the new provisions, businesses have an opportunity to position themselves to support employees’ long-term financial wellbeing.
  3. Structures such as pooled employer plans can ease the transition to SECURE 2.0.

Retirement readiness is a pressing issue nationwide. According to the Federal Reserve, only 75 percent of non-retirees have retirement savings in some capacity and of that number, less than half are confident that their retirement savings are on track1

Signed into law in December 2022, the second version of the Setting Every Community Up for Retirement Enhancement (SECURE) Act will put new demands on retirement plans and businesses across the U.S. With over 90 provisions to consider and implement, business leaders will need to make decisions about their 401(k) and 403(b) structures, fast. 

These decisions will have immediate and long-term impacts for businesses. Financial considerations and operational shifts will need to be carefully considered alongside employee wellbeing.

In transitioning to SECURE 2.0, businesses will be challenged by:

1. Changing tax responsibilities
2. Expanded eligibility requirements
3. New distribution options
4. Additional reporting and disclosures

In other cases, there are opportunities for leaders to make strategic decisions for the future:

1. Sustainable provisions for student loans
2. Personal emergency savings accounts
3. Expanded sources for Roth contributions

In European countries such as Finland and Norway, the transition from defined benefit to defined contribution plans shows how scattered employee plans can be consolidated. In Australia, launching a hub used to consolidate retirement accounts removed burdensome and costly manual procedures while boosting engagement in retirement planning for the population. 

SECURE 2.0 provides a similar opportunity for U.S. employers to support their workforce. In cases where employees have had shorter tenure in previous roles, the act will enable them to consolidate their savings and earn interest. In cases where employees are unable to save into their retirement plans due to student loan obligations, employers can match these payments and direct the funds into their employees’ accounts. In introducing these provisions alongside more than 90 others, SECURE 2.0 is an opportunity for employers to change the narrative around retirement planning and savings and position themselves to support employees’ long-term financial wellbeing.

An external perspective can help leaders make better decisions. The transition to SECURE 2.0 will look different for every employer, so partnering with retirement planning specialists can bring objectivity and expertise to retirement planning and decision-making. Structures such as pooled employer plans (PEPs) give businesses the autonomy to retain control over the decisions that matter most while adopting best practices and relieving leaders of administrative burdens.

  • Save time
  • Save costs
  • Focus on what matters

Forward-thinking business leaders will be in a position to build a sustainable plan for both the business and its employees. 

Find out more about how a PEP can support the transition to SECURE 2.0.



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The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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