Retirement Industry Leader Robert L. Reynolds calls on Congress to preserve and expand savings incentives in Tax Reform Proposals
WASHINGTON, D.C., September 27, 2017 — At a gathering of distinguished policy experts, retirement industry leaders and lawmakers today, Robert L. Reynolds, CEO of Great-West Financial® and Putnam Investments and author of the recently published book, From Here to Security, called on Congress to act in the best interest of American workers and to preserve and expand tax incentives inherent in the nation’s retirement savings system.
“A cut to retirement savings incentives in order to ‘pay for’ unrelated tax cuts would be a serious policy mistake,” said Reynolds. “Congress must not sacrifice the savings individuals will need for tomorrow to fund today’s budget. We should, in fact, strengthen and expand incentives for retirement savings as part of any national tax reform.”
Reynolds, author of From Here to Security: How Workplace Savings Can Keep America’s Promise, published by McGraw-Hill, is urging support for new policy measures to make workplace savings accessible to nearly all American workers. In the new book, he draws the correlation between retirement tax incentives and the flow of capital into equity and debt markets, which ultimately drives national economic growth. Any reduction of those incentives, Reynolds argues, will likely have a negative impact on growth.
“Personal solvency and national solvency actually reinforce each other. It follows that any policy move that increases savings will also likely increase growth. Any policy moves that reduce or inhibit savings may slow future growth,” said Reynolds.
From Here to Security also calls on the financial services industry and policy makers to make improvements to America’s workplace savings system that would enable millions more Americans to better prepare for a dignified retirement, and in turn, also help spur the country’s long-term economic growth.
"Improving retirement security is critical for all Americans,” said Financial Services Roundtable CEO Tim Pawlenty. “Bob’s leadership and willingness to share his ideas contribute in vital ways to the goal."
“We have a tremendous opportunity to dramatically improve income replacement in retirement for all working Americans,” said Reynolds. “While we know that a strengthened workplace savings system would be extremely beneficial for individuals and families, the additional savings would also provide the U.S. economy with a much needed growth engine by fueling our capital markets, business development, job creation and more,” he continued.
“On a macro level, meeting our retirement challenges head-on would create a tremendous spirit of American renewal and optimism, by taking charge of our own destiny,” Reynolds added.
Reynolds, CEO of Great-West Financial — which includes Empower Retirement, the nation’s second largest retirement service provider by participants — explained that the nation holds some $26 trillion in retirement assets, yet tens of millions of U.S. citizens lack access to on-the-job savings plans. He noted that policy fixes that make multi-employer plans easier to set up and administer could go a long way to expanding plan access. In addition, Reynolds pointed out that the long-term solvency of Social Security is essential, as the program serves as the foundation for all Americans’ retirement security.
“If workers across the United States can be given access to a retirement savings plan, which makes use of proven best practices, we can help position millions of additional Americans for a more successful outcome in retirement,” he said. “Solving America’s retirement challenge is very much within our grasp.”
About From Here to Security
From Here to Security: How Workplace Savings Can Keep America’s Promise by Robert L. Reynolds makes the case that adjustments to the retirement system will result in greater outcomes for individuals, businesses and the U.S. economy — helping to drive growth, innovation and national optimism. For more information, visit the accompanying website, https://www.heretosecurity.com/.
About Great-West Financial
Great-West Financial® is a registered mark of Great-West Life & Annuity Insurance Company. Headquartered in metro Denver, Great-West Financial administers $521 billion in assets for its nearly 8.7 million retirement, insurance and annuity customers.
Empower Retirement, Great-West Financial’s retirement arm, is the nation’s second-largest retirement plan record keeper by total participants (Pensions & Investments, April 2017). Great-West Financial is an indirect, wholly owned subsidiary of Great-West Lifeco Inc. and “A Member of the Power Financial Corporation Group of Companies®.”
About Putnam Investments
Founded in 1937, Putnam Investments is a global money management firm with 80 years of investment experience. At the end of August 2017, Putnam had $166 billion in assets under management. Putnam has offices in Boston, London, Frankfurt, Tokyo, Singapore and Sydney. For more information, visit putnam.com.
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