Indiana House Bill HR0037

Indiana 2022 Regular Session

• Introduced: 3/7/22

Caption

Urging the Legislative Council to assign to an appropriate study committee the topic of financial security in retirement for all Hoosiers.

Impact

The impact of HR0037 could be profound as it lays the groundwork for potential future legislation aimed at enhancing retirement savings among Hoosiers. By investigating ways to alleviate the regulatory burdens on small businesses, the study may lead to more businesses offering retirement plans through mechanisms like payroll deduction. Such a shift could not only improve the financial outlook for many retirees but also result in cost savings for the state by decreasing dependency on public assistance programs. According to estimates provided in the text, small improvements in retirement income could result in significant savings for taxpayers.

Summary

House Resolution HR0037 urges the Legislative Council of Indiana to assign the topic of financial security in retirement for all Hoosiers to an appropriate study committee. The bill recognizes the growing concern over the nation's retirement savings deficit, emphasizing that many households are at risk of financial insecurity in their old age. It briefs on the inadequacy of Social Security benefits and highlights the reliance of many retirees on employer-sponsored retirement plans to supplement their income. The resolution also points out the substantial percentage of retirees who depend heavily on Social Security as their sole source of income, indicating a significant issue that could have further implications for the state's budget.

Contention

While the resolution itself does not propose specific regulations, it raises awareness around the need for both businesses and individuals to prepare better for retirement. The call for studying the preparedness of Hoosiers for financial aging and the need for a statewide financial literacy strategy indicates a proactive approach. However, this may also spark contention regarding the lengths to which state intervention should go in regulating financial planning and the extent it could intrude into the operations of small businesses. The resolution acknowledges that a lack of financial literacy is a barrier that needs addressing, which can be a divisive topic among legislators regarding the methods to implement educational reforms.