LPL Study on SECURE 2.0 Supports Passage of Legislation

Last Edited by: LPL Financial

Last Updated: December 08, 2022

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CHARLOTTE, N.C. – December 8, 2022 – LPL Financial LLC today released a study showing the positive impact that the federal bipartisan retirement legislation, informally known as SECURE 2.0, would have on incentivizing Americans to save. Enacting three bills – Securing a Strong Retirement Act, the RISE & SHINE Act and the EARN Act – SECURE 2.0 would build upon the success of the SECURE Act, which became law in December 2019.

“Improving retirement security means increasing retirement savings and the long-term participation of workers in the system. We must do all that we can to encourage people at all levels, especially lower- and middle-income, to take advantage of today’s retirement savings opportunities,” said Senator Ben Cardin (D-MD). “I started on this effort to improve retirement security years ago with my colleague and friend Senator Rob Portman. I’m proud to see our most recent bill largely included in SECURE 2.0. This survey provides further confirmation that SECURE 2.0 must pass this Congress in order to increase retirement savings among working families as well as help close the coverage gap.”

Senator Rob Portman (R-OH) added, “One of the highlights of my career has been working across the aisle with my good friend, Senator Ben Cardin from Maryland on retirement security legislation. As with the other three pieces of legislation we worked on together, I am proud to see that in our last Cardin-Portman project we will have a strong impact on the ability of people to save for a healthy retirement.”

About LPL's study

LPL surveyed more than six hundred LPL-affiliated financial advisors for feedback on major provisions in the package of bills. Overall, more than 95% of respondents support federal retirement legislation and believe that these bills would help alleviate challenges that individuals face when trying to save for retirement. Additional findings among advisors include:

  • 89% believe that small businesses would be incentivized to start a plan by an increase in the existing small business start-up tax credit as proposed in the House and Senate Finance bills.

  • 94% support the House provision that provides an additional small business start-up credit based on the contributions made by the employer.

  • 74% believe that allowing part-time employees into a plan after two years, instead of three, would help close the coverage gap as proposed in all three bills.

  • 79% believe that small businesses that make military spouses immediately eligible and vested in their plan should be entitled to a tax credit to cover the additional cost in both the House and Senate Finance bills.

  • 81% support expansion of the Saver’s Credit, which is in the House and Finance bills in different forms, as a means to increase retirement savings among low- and middle-income individuals.

  • 91% applaud the House and Finance bill provision allowing plans to self-correct inadvertent errors without a submission to the IRS.

“At LPL Financial, we believe that everyone deserves access to financial advice that furthers their ability to save for major life events, such as buying a home, paying for college tuition and ultimately retirement,” said LPL’s President and CEO, Dan Arnold. “In that spirit, this legislation may unlock significant retirement options for small businesses and their employees. It’s also very timely, given the impact that the pandemic has had on many Americans’ retirement savings.”

Download the full report to learn more about how LPL Financial promotes retirement security across the country. 

About LPL Financial

LPL Financial (Nasdaq: LPLA) was founded on the principle that the firm should work for the advisor, and not the other way around. Today, LPL is a leader in the markets we serve*, supporting more than 21,000 financial advisors, including advisors at approximately 1,100 institution-based investment programs and at approximately 500 registered investment advisor ("RIA") firms nationwide. We are steadfast in our commitment to the advisor-centered model and the belief that Americans deserve access to personalized guidance from a financial advisor. At LPL, independence means that advisors have the freedom they deserve to choose the business model, services, and technology resources that allow them to run their perfect practice. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors, so they can take care of their clients.

*Top RIA custodian (Cerulli Associates, 2020 U.S. RIA Marketplace Report). No. 1 Independent Broker-Dealer in the U.S. (Based on total revenues, Financial Planning magazine 1996-2022). Among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors (2021-2022 Kehrer Bielan Research & Consulting Annual TPM Report). Fortune 500 as of June 2021.

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