CFP Board Statement on the State of the Union Retirement Proposal

On Tuesday, February 24, President Trump delivered his State of the Union address and laid out a proposal to expand access to retirement savings for millions of Americans, making available a retirement plan similar to the Thrift Savings Plan with matches from the federal government for contributions up to $1,000. 

CFP Board welcomes the President’s interest in expanding retirement security for all Americans. After a lifetime of hard work, Americans want and deserve the peace of mind that financial security brings them in their later years. However, for far too many people, a dignified retirement and financial independence remain an elusive goal with only half of all private-sector employees in the United States having access to an employer-provided retirement plan.

To help Americans reach their retirement goals, CFP Board continues to urge Congress and the administration to expand access to competent and ethical financial planning. According to CFP Board research, only 1 in 4 Americans feel financially prepared for retirement and only 37% of those aged 45 to 60 are satisfied with their retirement savings accumulation. CFP® professionals are uniquely positioned to bridge this gap, reporting that retirement planning topped the list of personal finance topics they are discussing with their clients this year. The benefits of the professional advice they receive is clear. According to CFP Board’s most recent report on its ten-year study of the impact of holistic financial planning:

• 94% of households advised by CFP® professionals feel confident in their ability to achieve financial goals.
• 83% maintain an emergency fund covering three months of income, ensuring that retirement savings remain protected during periods of economic volatility.

CFP Board looks forward to learning more about the administration’s proposal and remains committed to working with policymakers to ensure Americans receive the retirement they deserve.