Either way, your choice would foster new competition in the investment management industry. The increased competition would work to reduce management and marketing expenses, transferring vital dollars from the investment industry to working people. Most important, the Universal Savings Account would create an opportunity for millions of workers to retire in dignity. You can understand the nature of the problem by looking at the snake pit of complexity Congress has built around existing tax deferred retirement savings programs. Each plan has its own Byzantine rules and regulations, each has its own complexities, limits, and costs.
Some workers can save for retirement at low expense.
Others are virtually prohibited from tax deferred savings by rules and regulations. Still others are limited to high expense channels of distribution. While Congress regularly wrings its collective hands over our declining savings rate and pats itself on the back for creating a new incentive, the truth is that the plethora of plans and regulations is so overwhelming that the plans are part of the problem, not the solution. Let me give you some examples. The Non-Profit Sector.