WASHINGTON, DC — As the Biden administration announces a major new initiative to crack down on junk fees plaguing American’s retirement savings, government watchdog Accountable.US called out financial groups Insured Retirement Institute and the Chamber of Commerce for their vigorous anti-regulation and advice-for-commission stance, which has driven up the cost of retirement by the billions at the expense of American families. The Retirement Security rule will expand fiduciary status to include retirement financial advisors, thereby applying financial regulations to a broader group of advisors and protecting Americans from exorbitant fees and misleading advice as they plan for retirement.
For years, American families have been bombarded with hidden, high-cost fees that make the journey to retirement all the more stressful and expensive. Planning for retirement is difficult enough without the added pressure of navigating junk fees and paid-for endorsement traps at every step. Working people should be able to trust the advice they get is genuine, not sponsored by a major corporation. As the industry attempts to bully its way out of clearly-needed regulation, the Biden administration is pressing forward in its fight to lower costs for American families while ensuring everyone receives the same quality advice.”
Liz Zelnick, Director Of Accountable.Us’ Economic Security & Corporate Power Project.
The Chamber of Commerce and Insured Retirement Institute have publicly condemned the initiative, with the latter arguing that the Department of Labor has “produced no evidence of problems or deficiencies” that make additional rulemaking necessary. The Chamber has spent $97 million while lobbying against the “Department of Labor’s review of the definition of investment advice fiduciary” and other issues. Meanwhile, the Insured Retirement Institute has spent $1.26 million while lobbying against changes to fiduciary designations since Q4 2021. Despite industry objections, this proposal is expected to add up to 20% to the average retirement savings for a middle-class saver by the time they reach retirement.
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