Obama Announces Measures to Help Retirement Savings

September 8, 2009

Washington – US President Barrack Obama unveils new government measures that will spur Americans to save more money for retirement last Saturday, a move that would put the economy on a stronger footing in the future according to the White House.

In his weekly radio and Internet address, Obama said the government will enact rules that would make it easier for small businesses to let workers automatically enroll in Individual Retirement Accounts (IRAs) and 401(k) retirement plans.

Under the new measures, payments for unused vacation and sick leaves can be converted into retirement savings and workers can have their tax refunds directly deposited into their retirement accounts or be used to buy savings bonds.

This is inline with what the president often warned that economic recovery must be coupled with steps to prevent another downfall.

The Americans reliance on credit cards and failure to save are among things he has targeted as part of that effort.

Most of the new measures will take effect immediately as the measures do not require congress approval.