Legislative Update: Expanding Retirement Plan Access for Younger Workers

A new bipartisan bill, the Helping Young Americans Save for Retirement Act (H.R. 9281), was introduced in the House of Representatives on August 2, 2024. Sponsored by Rep. Brittany Pettersen (D-CO) and Rep. Tim Walberg (R-MI), this legislation aims to lower the minimum age for ERISA-covered retirement plans from 21 to 18.

Currently, 40% of employer-sponsored plans have a minimum age of 21, meaning younger workers miss out on early savings opportunities. By lowering the minimum age requirement, this bill seeks to force companies to offer retirement benefits to employees aged 18-20, enhancing participation opportunity for younger Americans.

A similar bill was also introduced in November 2023 in the Senate (S. 3305). If passed, the new eligibility requirements will take effect on January 1, 2026.