Legislative Highlights
Key Retirement Policy Proposals to Watch in 2026
Retirement policy continues to evolve as lawmakers work to address growing concerns about retirement readiness, access to workplace plans, and long-term financial security for aging Americans. Roughly 45% of private-sector workers lack access to an employer-sponsored retirement plan, a gap that policymakers have been focused on in recent years.
Following the passage of the SECURE Act in 2019 and the SECURE 2.0 Act of 2022, policymakers in 2026 are discussing several new legislative proposals that could further expand retirement access and strengthen retirement savings systems. While there is nothing concrete at this time, many policy analysts believe that elements of these proposals could eventually be combined into a future retirement reform package often referred to as SECURE 3.0.
Expanding Retirement Access: The Retirement Savings for Americans Act
One proposal gaining attention is the Retirement Savings for Americans Act, introduced by Senator John Hickenlooper (D-CO) and Senator Thom Tillis (R-NC). The proposal seeks to address the large number of workers who currently lack access to employer-sponsored retirement plans.
Under the proposal, portable retirement accounts would be created for workers whose employers do not offer retirement benefits. Employees would be automatically enrolled through payroll deductions, although they could opt out if they choose. The accounts would also include government matching contributions for lower-income workers, helping encourage participation and long-term savings.
Supporters argue that this approach could significantly expand retirement coverage across the workforce, particularly for employees working for small businesses or in industries where employer-sponsored retirement plans are less common.
Expanding Emergency Savings Within Retirement Plans
Another policy area under discussion involves expanding emergency savings features within retirement plans. Congress first introduced the concept of Pension-Linked Emergency Savings Accounts (PLESAs) through the SECURE 2.0 Act, which allows workers to set aside a limited amount of emergency savings within their retirement plan structure.
Lawmakers are now considering additional legislation to strengthen and expand these provisions. One proposal supported by Senator Michael Bennet (D-CO) and Senator Todd Young (R-IN) would expand access to these emergency savings accounts and potentially increase the amount workers can save for short-term financial needs within their retirement plan accounts.
Encouraging Lifetime Income: The Lifetime Income for Employees Act
A third proposal focuses on expanding lifetime income options within workplace retirement plans. The Lifetime Income for Employees Act, introduced by Senator Bill Cassidy (R-LA) and Senator Tim Kaine (D-VA), seeks to help workers convert a portion of their retirement savings into predictable monthly income streams during retirement.
Under the proposal, workers aged 50 and older could allocate up to $200,000 of their retirement savings to a lifetime income product, such as an annuity, while still employed. This legislation is intended to address “longevity risk,” the possibility that retirees may outlive their savings.
By allowing workers to secure guaranteed income streams before retirement, supporters believe the proposal could help recreate some of the stability once provided by traditional pension plans while still maintaining the flexibility of modern defined contribution retirement systems.
Looking Ahead: Building Blocks for SECURE 3.0
As lawmakers continue exploring ways to expand access to retirement plans, strengthen savings, and improve retirement income security, these initiatives may ultimately serve as building blocks for a future SECURE 3.0 legislative package.