At a Glance | March 12, 2020 How Much More Secure Does the SECURE Act Make American Workers? Using EBRI’s Retirement Security Projection Model® to look at the impact of the SECURE Act on workers, including the youngest cohort simulated and employees at smaller companies. SECURE ACT IMPACT BY AGE Under the SECURE Act, Younger Workers See the Greatest Improvement in Retirement Readiness The Setting Every Community Up for Retirement Enhancement Reduction in Retirement Savings Deficits Increase in Retirement Savings Surpluses Act of 2019 (SECURE Act) was for those simulated to experience a deficit for those not simulated to experience a deficit designed to improve retirement coverage as well as the ability - 3.0% + 5.9% Overall of individuals to manage important retirement-related risks. - 5.3% + 14.4% Ages 35–39 EBRI simulated the likely impact on retirement income adequacy by age and other factors. Overall, the retirement savings deficits would be decreased by $115 billion under the baseline assumptions. CHANGE BY EMPLOYER SIZE The Increase in Retirement Savings Surpluses and Decrease in Retirement Savings Deficits Would Be Larger for Employees Working for Smaller Employers As expected, the percentage increase in retirement savings surpluses and percentage Overall decrease in retirement savings Reduction in Retirement Savings Deficits Increase in Retirement Savings Surpluses deficits would be larger for for those simulated to experience a deficit for those not simulated to experience a deficit Employer Size: employees working for smaller employers. - 5.6% + 8.9% < 100 Employees - 5.2% + 7.8% 100–500 Employees Ages 35–39 Reduction in Retirement Savings Deficits Increase in Retirement Savings Surpluses for those simulated to experience a deficit for those not simulated to experience a deficit Employer Size: - 10.7% + 20.5% < 100 Employees - 8.6% + 16.3% 100–500 Employees SOURCE: Jack VanDerhei, “How Much More Secure Does the SECURE Act Make American Workers: Evidence From EBRI’s Retirement Security Projection Model®,” EBRI Issue Brief, no. 501 (Employee Benefit Research Institute, February 20, 2020). © 2020 EBRI This report is copyrighted by the Employee Benefit Research Institute (EBRI). You may copy, print, or download this report solely for personal and noncommercial use, provided that all hard copies retain any and all copyright and other applicable notices contained therein, and you may cite or quote small portions of the report provided that you do so verbatim and with proper citation. Any use beyond the scope of the foregoing requires EBRI’s prior express permission. For permissions, please contact EBRI at permissions@ebri.org.