U.S. PIRG federal legislative director Jerry Slominski issued the following statement concerning the new rule on retirement advisors announced by the Department of Labor today:
“While this new rule will be a huge help to retirees and those near retirement, its biggest impact will be on millennials and future generations. Because defined benefit plans are largely a thing of the past, most young people need to create their own retirement savings, and therefore need to be able to rely on their investment advisors to act in their best interests. Most people, understandably but incorrectly, assumed that this consumer protection was already required, which until today was not the case.
According to conservative estimates, more than $17 billion is unnecessarily lost every year from retirement savings under our current system. Over decades, putting this money back into the investment accounts of savers will mean the difference between scrambling to make ends meet well into retirement years or a financially secure future for millions of Americans.”