A proven, ready-made solution to build wealth for working Americans.
We are calling on Congress to give low- and moderate-income Americans access to a new retirement savings program modeled after the federal Thrift Savings Plan (TSP), a 401(k)-like program enjoyed by federal employees. Key features of TSP include automatic enrollment for eligible workers, low fees, simple plan options, and federal matching contributions to reward and encourage savings.
Research shows that the right incentives can play a crucial role in helping people achieve their financial goals and attain self-sufficiency. The TSP is a proven program that draws from important findings in behavioral economics to deliver outstanding results for eligible workers–including those with low income and educational attainment.
That’s why it is a perfect model for a new program designed to target lower-income workers who don’t have access to a retirement plan through their employers, thereby filling the gap in the current retirement system that is leaving tens of millions of American workers behind.
Helping hardworking Americans build wealth shouldn’t be a partisan issue. As the country begins to rebuild from the Covid-19 crisis, it’s time for Congress to work together to ensure that everyone has access to a retirement savings account like the TSP.
TSP participation rates jumped by at least 20 percentage points with a government match for: eligible Black workers, those with at most a high school education, and those in the bottom one-third of earnings (according to a Congressional Budget Office ↗ report).