The Biden administration has proposed a new rule to close loopholes that create added costs for seniors seeking retirement investment advice. Sadly, the need for a change like this is just another example of older Americans facing unique and unnecessary financial challenges.
Essentially, the issue is that for years, there have been no regulations on financial advisors giving retirement advice to ensure that their advice is actually in the best interest of their clients.
Of course, determining what’s “in the best interest” of a retiree could be viewed as subjective. However, what we have is a system in which financial advisors can base their advice on their own commissions.
Retirees have incurred hidden and unnecessary fees because of advisors pushing specific investment products. The new Labor Department proposal would put rules in place to prevent this. Read more here.
While any change to help American seniors save is a step in the right direction, there’s still a lot of work to do. Social Security reform is one of the biggest changes seniors need.
This is why we support a bill we call the Elder Relief Act. Follow us for more updates on this vital legislation.