Part 11/12:
Starting in 2025, small businesses will face a new mandate: automatic enrollment of employees into retirement plans unless they opt out. Contributions will initially be at least 3%, increasing by 1% annually until reaching a cap between 10-15%. This creates a mechanism to promote consistent savings across the workforce, aiming to bridge the retirement savings gap.
Final Thoughts
These legislative updates mark a significant shift toward making retirement savings more accessible, flexible, and tailored to various life circumstances. From increasing the age for mandatory withdrawals to introducing penalty waivers for emergencies and natural disasters, the law provides multiple avenues to strengthen retirement security.