Most small businesses do not offer retirement plans because the excessive regulation which drives the costs significantly higher. Trump’s new Executive Order is primarily designed to reduce those costs by streamlining the excessive regulation. The order further makes it clear: “Within 180 days of the date of this order, the Secretary of the Treasury shall consider proposing amendments to regulations or other guidance, consistent with applicable law and the policy…”
The biggest problem with retirement plans has been the pretense that they should be “conservative” and that has meant they buy government debt. As the Fed lowered rates to “stimulate” the economy, they have remained well below 8% for more than a decade which has sharply reduced the ability to plan for retirement using bonds. Unless people begin to select more private investment into equities, they stand to lose a fortune and find themselves unable to retire. The sharp decline in the birth rate has also created a dangerous situation. For centuries, you had children to ensure you would be taken care of in your old age. Socialism has destroyed the family unit and taxation with student loans has drastically reduced the earning ability of children to save no less take care of their parents. The entire historical family structure has been undermined and the pension crisis poses a huge social threat in the years ahead.
