Mandating a fiduciary-only approach for all retirement arrangements will have the unintended consequence of harming lower- and middle-income families who are already behind in saving for retirement.
New regulations could threaten efforts to promote equity and close the wealth gap.
A fiduciary-only regulation would have unintended consequences
The Savings Gap
Saving for retirement isn’t easy for everyone, particularly for Hispanic and Black families. They earn less, and they’re more likely to work for employers that don’t offer 401k or other retirement savings plans. In fact, nearly two-thirds of Hispanic families and more than half of Black families don’t have any form of retirement savings account.
Preserving access to financial tools that provide guaranteed income for life, like annuities, can offer much-needed certainty through retirement—the same kind of certainty pensions gave previous generations.
Unfortunately, a fiduciary-only regulation would shut off access to these important tools, and hurt the very people the regulation intends to help.