In the News
House Bill Would Lower Retirement Eligibility Age for DC PlansAligning with legislation introduced in the Senate in May, the bill allows for workers as young as 18 to be eligible to participate in defined contribution plans.
Washington,
July 25, 2025
The House of Representatives reintroduced legislation on Wednesday that would offer workers younger than 21 access to more retirement benefits. Representative Brittany Pettersen, D-Colorado, introduced the Helping Young Americans Save for Retirement Act alongside co-sponsor Michael Rulli, R-Ohio. The legislation was referred to the House Committee on Ways and Means. The bill would allow workers as young as 18 to be permitted in defined contribution plans governed by the Employee Retirement Income Security Act, as did a Senate version of the bill introduced in May by Senator Bill Cassidy, R-Louisiana, chair of the Senate Health, Education, Labor, and Pensions Committee. “I started working at a young age and worked throughout middle school, high school, and college,” Pettersen said in a news release. “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.” Pettersen’s release cited a 2021 study by the Plan Sponsor Council of America, which found that 40% of plans currently had a minimum age requirement of 21. The legislation was introduced in both houses of Congress in the previous session, but neither bill advanced out of committee. “If you’re old enough to fight for your country at 18, you should be able to fight for your financial future too,” Rulli said in a statement. “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.” |