Financial Security For All, Not Some
In times of division and conflict, Finseca is fighting to protect the financial security of millions of Americans. Why? For the fourth time in 13 years, the Department of Labor (DOL) is attempting to enforce a regulation that will significantly decrease financial advice for millions of Americans, especially those who need it the most.
The Power of a United Voice
When the DOLs proposal was launched last October, leaders from across the profession came together to raise a unified voice against this new regulation. The regulation mandates that every financial security professional be a fiduciary, which is a financial advisor responsible for managing investments for clients, charging a percentage of assets as a fee.
“If you want to go fast, go alone. If you want to go far, go together.”
How to Join the Fight
The number one thing you can do – is get everyone in your circle of influence to join Finseca. This kind of moment is exactly why we need to unify the whole profession under one message.
There is still a path forward with our elected officials in Congress. Join us at Advanced Markets during our Call to Action: Capitol Hill Day and ensure your voice is heard!
Can you find 20-30 minutes so we can speak to your firm/ team/advisors, etc. about the impact this rule will have, and what we need to do to stop it?
Where are we at Today?
We are at a critical juncture: The Office of Management and Budget (OMB) concluded its review of the Department of Labor’s (DOL) Fiduciary Rule 3.0 in April 2024. The final rule updates the definition of an investment advice fiduciary under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC). This rule is a solution in search of a problem that has already been addressed, and it is clearly a step backward for Americans’ retirement security.
We will continue the fight, and we must win, or the American people’s financial security will suffer greatly.
House Financial Services Subcommittee Testimony
Marc Cadin joins CNBC’s Squawk Box to Fight for the American People
$7 trillion gap
exists between what Americans have saved for retirement and the amount they will ultimately require.
8 in 10 investors
regardless of annuity ownership — agree that lifetime-guaranteed income gives people peace of mind in retirement.
$12 trillion
dollar life insurance coverage gap between what Americans have and what they need.
Why it Matters
Our profession protects the dreams and promotes the prosperity of the American people.
Meet Granny Nanny Mary Jo
In the early days of the pandemic, a grandmother named Mary Jo placed a frantic call to her financial security professional – a Finseca Member. She had just started a new job – unpaid – but the best kind… full-time nanny to her grandkids. The stock market was tanking, and so were Mary Jo’s retirement savings. She was panicked thinking she was going to have to go back to work.
Thankfully, for Mary Jo, she and her FSP had a holistic financial plan in place. And Mary Jo had an annuity — a consistent and stable income that was guaranteed. Mary Jo immediately had the reassurance that she’d be okay financially, and something even better – peace of mind that she could keep her favorite job of all… being a Granny Nanny.
Finseca strongly encourages you — our Congressional leaders – to adopt a no-funds amendment prohibiting the Department from moving forward with this proposal. Mary Jo and millions of other Americans like her depend on it.
Ernst & Young Study
Independent research by Ernst and Young illustrates that a holistic financial plan is an essential element to achieving financial security. According to that study, consumers with a diversified retirement portfolio that includes permanent life insurance, savings through investments and guaranteed income from annuities get better outcomes.
In Brief:
- By 2030, gaps in investors’ retirement savings and needed protections are projected to exceed hundreds of trillions of dollars in the US.
- This presents an opportunity for insurance companies to better serve customers to bridge these chasms, through modified investment approaches.
The Numbers Don’t Lie
- Four-in five retirement savers (81%) report they are concerned about having enough savings to last through retirement. (ACLI)
- Retirement savers want options when thinking about retirement. More than nine-in-ten (94%) agree it is important for Americans of varying income levels to have options when planning for retirement. (ACLI)
- Retirement savers also want to maintain the ability to work with different types of financial professionals. Ninety-one percent of retirement savers agree people should have the option to work with any type of financial professional that meets their needs, with retirement savers earning between $50,000 and $100,000 annually expressing the highest level of preference among income levels to have the option to work with any type of financial professional that meets their needs. (ACLI)
- The American people face a $7 trillion gap in retirement savings. (LIMRA)
- We’re staring down a $12 trillion protection gap. (LIMRA)
Additional Resources
Details
Our Response
Press
- Final DOL Fiduciary Rule Released Statement
- Marc Cadin’s Remarks to the House Financial Services Committee
- House Financial Services Subcommittee testimony
- Finseca’s statement to the press
- DOLs Fiduciary Rule 3.0 Call Recording on November 10
- Comment period extension request letter
- Finseca DOL Comment Letter
- The Capital Times: Regulation Would Limit Advice to Retirees Who Need it Most
- Detroit News: Federal Regulation Would Undermine Financial Guidance for Retirement Savers
- Marc Cadin joins CNBC’s Squawk Box to Fight for the American People
- CEA Blog Post entitled: The Retirement Security Rule
- The NAIC’s response
