Helping Americans build savings for a secure retirement is among the most important roles of the U.S. capital markets.

Individuals of all income levels can invest, save for the long-term, and access a professional financial advisor who serves as a critical link in helping investors meet their goals. Working with our members who serve retail investors, SIFMA seeks to raise awareness of how financial advice and financial literacy programs can positively impact the financial health of Americans working to reach their financial goals, including purchasing a home, sending children to college and saving for retirement. 

In 2023, households held $66.4 trillion in liquid financial assets (+13.3% Y/Y); there were $44.8 trillion in retirement assets (+9.0% Y/Y).

Changing demographics underscore the need for a robust private retirement system. Policymakers must continue to address the challenge of encouraging and facilitating planning for retirement across our society. 

Today, U.S. workers are increasingly relying on individually funded retirement plans, such as 401k’s and IRA’s. Defined contribution plans account for $9.2 trillion in assets, growing at a 6.2% compound annual growth rate over the last decade. Both through their employers and individually, Americans today are largely responsible for building their retirement accounts themselves. Over half of total retirement assets are individually funded through defined contribution retirement plans and IRAs. Because individual savers play a greater role in the decision-making regarding their investments, access to a financial advisor is even more important today to help individuals prepare for their future. 

SIFMA is committed to increasing retirement security for all Americans and has identified three primary pillars to reach this goal: 

1. Preserving current savings incentives, 
2. Implementing SECURE provisions, and 
3. Enhancing education. 

With efforts such as these, we can boost participation in retirement savings, enable Americans to save more, promote financial literacy and support a strong retail investor culture.

Preserving Current Savings Incentives

The current savings incentives, whether through an IRA or through an individual’s employer as a SEP, SIMPLE, or 401(k) plan, have helped middle income savers get the most from the capital markets. We believe these incentives are important to continue to support individual’s preparing for their retirement.

Implementing SECURE Act Provisions

Congress moved in a positive direction by passing SECURE and SECURE 2.0. Together, these new laws include important provisions such as higher catch-up contributions for workplace plans, an increase in the Required Minimum Distribution (RMD) age, and an avenue for the creation of emergency savings accounts. SECURE 2.0 represents a major victory for employers, individuals, and the retirement system and SIFMA is proud to have supported its passage.

Enhancing Education

In terms of enhancing education, we continue to support access to professional financial advisors. We were concerned that the Department of Labor’s newest rule attempting to change the existing fiduciary standard that covers relationships between investors and their advisors would limit that access. As a result, we filed suit against the Department of Labor (DOL) in 2024. The Court issued a stay stopping the rule from going into place until the court has an opportunity to review the parties’ arguments. We believe investors are well protected by the SEC’s Regulation Best Interest which has foundationally improved the protections in place for retirement savers.