Press Releases

Today, U.S. Representative Brittany Pettersen (CO-07) and Congressman Mike Rulli (OH-06) introduced the bipartisan Helping Young Americans Save for Retirement Act to help more Americans ages 18 to 20 years old access employer-sponsored retirement plans. Companion legislation has been introduced in the Senate by Senators Bill Cassidy (R-LA) and Tim Kaine (D-VA). 

Currently, the Employee Retirement Income Security Act (ERISA) only requires employers who offer 401(k) plans to make the plans available to employees who are 21 years old and over. While a company can offer a 401(k) plan to their employees under 21 years old, many do not due to high costs and excessive red tape. The Helping Young Americans Save for Retirement Act will require employers to offer 401(k) plans to employees as young as 18 and will reduce regulatory burdens that price out employers from offering these retirement plans to workers under 21.

“I started working at a young age and worked throughout middle school, high school, and college,” said Pettersen. “But like many Coloradans, I didn’t have the chance to start saving for retirement until much later. We need to update our financial systems to reflect the real lives of working people and ensure that every young American has a fair shot at long-term financial security. Thank you to Congressman Rulli for joining me in this effort to help more young people reach their full financial potential.” 

“If you're old enough to fight for your country at 18, you should be able to fight for your financial future too,”said Rulli. “In the face of the largest generational wealth gap in American history, it’s time we give young people every tool to get ahead. Let them start saving, investing, and building real security. The sooner they start, the stronger America’s future becomes.”

A 2021 report showed that of employers who offer retirement plans, 40% of workplaces have a minimum age of 21 to participate in the plans. Employees between the ages of 18 and 21 are missing out on additional savings and three years of compound interest. The earlier young people can begin saving, the more time their money has to grow, potentially resulting in thousands of extra dollars and greater financial security in retirement.

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