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Fiscal Cliff and Your Retirement

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  • Description

    FBN's Peter Barnes on how fiscal cliff negotiations could affect the retirement savings tax break.

  • Duration 1:39
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As a fiscal clip looms at the end of the year one area that could be getting -- hit.

Is your retirement savings Peter Barnes and Washington DC with more on this and Peter why are -- focusing on this part of the high.

Because it is one of the biggest tax breaks out there -- less than those budget negotiators are talking about.

Trimming all kinds of tax deductions as part of tax reform.

And the fiscal cliff.

And some of these are pretty big ones.

But get this.

Now some researchers argue the brakes may not make a difference in overall retirement savings which may give.

New -- to tax reformers.

Each year Washington awards individuals and companies more than a hundred billion dollars in tax breaks to help people save more for retirement 61 billion for 401K and similar plans.

46 billion for our regular company pension plans sixteen billion for other types of retirement plans like -- and twelve billion for -- Now researchers at Harvard University -- retirement savings data from Denmark.

The study the impact of these kinds of breaks Denmark's tax.

And retirement plans resemble ours.

The researchers found that the Danish tax breaks.

Increased retirement savings but the for every dollar workers put end with -- government incentives.

They reduced their outside savings by almost the same amount net net workers increased their total savings overall.

I just a -- I have but the researchers did find that some things that do help people save more for retirement for example an example automatic enrollment of workers and a 401K.

Type plants Melissa.

Peter burns alright I have a lot of comments about that but I don't think we can stop and think you so much -- -- that.

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