Pub. 2 2012-2013 Issue 1

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S July • August 2012 15 Worker Confidence, Federal Budget at Center of Retirement Storm I t may be only coincidence, but it is certainly ironic, that as American workers find them- selves at a low point in conf idence about a secure retirement, Congress is holding hearings to assess whether to preserve or alter federal tax incentives for retirement saving. The Employee Benefits Research Institute (EBRI) annually conducts its Retirement Con- fidence Survey (RCS), polling Americans about their confidence in achieving a secure retire- ment. Notably, this year registers a significant drop in confidence fromfive years ago. Employ- ment and general economic uncertainty during the ongoing recession, some lukewarmemployer commitment to providing benefits, and mixed signals from lawmakers on their support for the present retirement saving framework are factors in diminished retirement confidence. Meanwhile, on April 17, 2012, the House Ways andMeans Committee held a hearing and accepted written comments on the retirement saving incentives in the Internal Revenue Code, including plan complexity, effects on the federal budget, economic efficiency, etc. There have been enough hints from lawmakers committed to cutting federal expenditures, and enough tax reform concepts introduced by independent “think tanks,” to suggest that virtually all tax federal preferences—save perhaps the home mortgage interest deduction—may be scru- tinized when looking for ways to balance the federal budget. If retirement savings incentives are reduced or eliminated to generate revenue to balance the budget, shock waves will likely reverberate throughout the financial industry and among taxpayers. FEATURE ARTICLE “If retirement savings incentives are reduced or eliminated to generate revenue to balance the budget, shock waves will likely reverberate throughout the financial industry and among taxpayers.”  Retirement Storm  continued on page 16 MIKE RAHN Consultant/Researcher Ascensus