Bipartisanship Is Alive and Well in the Retirement Arena

This is the latest in a series of columns about Social Security and retirement income planning.

Americans around the country and across the political spectrum report feeling worried about the division that has come to define our national discourse. To many, it seems like Democrats and Republicans can’t agree on anything.

That sentiment may be true with respect to any number of policy domains, but, thankfully, it is not true in the field of retirement planning.

I am consistently struck by how refreshingly bipartisan retirement policy discussions have remained in recent years, even as broader political divisions have deepened. Not only did we get passage of both the landmark Setting Every Community Up for Retirement Enhancement (Secure) Act and its Secure 2.0 Act followup, but we’ve also seen lawmakers come together in an attempt to fix what are seen as unfair Social Security claiming rules that disadvantage government workers and first responders.

Upon reflection, these data points probably shouldn’t be surprising, since retirement security is a shared goal for Americans of all political persuasions. Regardless of our views on abortion access, gun rights or the limits of the First Amendment, we are all getting older, and our ability to work to support our spending needs doesn’t last forever.

Indeed, despite deep polarization, a recently published report from the National Institute on Retirement Security finds significant common ground when it comes to Americans’ support for Social Security and pro-retirement policies.

At the same time, the work also shows that Americans across party lines are deeply worried about retirement preparedness, both for themselves and for their loved ones and communities. They are also broadly supportive of policies to strengthen and expand traditional defined benefit pensions.

Ultimately, retirement security is important for all of us, and that is clearly borne out by survey research. It is therefore vital that lawmakers — and financial advisors — remain committed to collective problem solving, especially on Social Security policy.

An Uncommon Consensus

The new NIRS report finds that most Americans agree that the nation faces a retirement crisis, with Republicans reporting this sentiment at only a slightly higher level (81%) than independents (79%) and Democrats (78%).

When asked about their level of concern about achieving financial security in retirement, more than half of Democrats, Republicans and independents say they are concerned. This reflects other recent surveys that ThinkAdvisor has covered, including the Schroders 2024 US Retirement Survey.

In that nationally representative survey, only 44% of retired Americans said they thought they had saved enough, with the figure dropping to 32% among workers. The vast majority of people, 89%, told Schroders that they worry about inflation lessening the value of their assets, while 85% said that higher-than-expected health care costs in retirement could quickly drain their net worth.

Returning to the NIRS report, debt is seen as problematic and as impeding retirement savings for Americans regardless of party. A large share of Democrats (74%), Republicans (68%) and independents (68%) believe that their level of debt is problematic. About three-fourths of Democrats, Republicans and independents who have debt say it is preventing them from saving adequately for retirement.

Also striking is that, across party lines, Americans hold traditional defined benefit pensions in high favor. Democrats (81%), Republicans (80%) and independents (76%) have similarly positive views about pension plans. Regardless of party, a large share of Americans say that all workers should have a pension and that the government should make it easier for employers to offer pensions.

Views on the usefulness of individual-style retirement accounts such as 401(k)s and IRAs are also high across political parties, although Americans of all political stripes commonly say that traditional pensions benefit savers more.

Shared Views on Social Security and Long-Term Care

The NIRS report goes on to show that Democrats, Republicans and independents all broadly support Social Security and want action now to protect benefits.

Americans overwhelmingly agree that Social Security must remain a priority, with 90% of Democrats in agreement, with independents at 88% and Republicans at 86%. Likewise, Americans of all parties want lawmakers to act sooner than later to shore up Social Security funding, and they all expect the next administration and Congress to address the program's financial shortfall.

The survey further shows that long-term care is a significant worry for Democrats, Republicans and independents alike. The vast majority of Americans — 83% of independents, 81% of Democrats and 80% of Republicans — say they are worried about the cost of long-term nursing care. The overwhelming majority agree that the government should take action to help Americans get access to quality long-term care.

The Road Ahead

Given the amount of common ground identified in the NIRS report, it makes sense that policy-watchers consistently say that retirement reform legislation should remain an area of meaningful bipartisan discussions — especially when it comes to policies meant to allow more Americans to save and invest effectively to meet their spending needs during life after work.

Whether Congress can act quickly to shore up the financial position of Social Security and Medicare is a different matter, they warn, but there are many other areas where relatively easy legislative changes could help address the looming retirement income crisis.

It’s true that politicians and national pundits are likely to focus on juicier topics, especially as the Trump administration ramps up for a second term. But the traditional sausage-making on sound retirement policy will very likely continue behind the scenes — as is often the case with policy topics that don't sharply divide the two parties.

As one policy expert recently reminded me, big bipartisan agreements tend to start in previous Congresses and percolate behind the scenes. Recall, for example, that the first Secure Act was drafted over almost six years.

Time, then, remains on our side to advance bipartisan retirement policy.