IRI VISION: PROPOSED DOL RULE IMPERILS RETIREMENT SECURITY FOR MILLIONS

Wayne Chopus
President and CEO

Today, the Insured Retirement Institute (IRI) is testifying at a second U.S. House of Representatives hearing about the flawed U.S. Department of Labor (DOL) investment advice rule. The attention of Congress is warranted for many reasons, but none more critical than the harm that the regulation will inflict on the retirement security of millions of workers and retirees.

IRI and many other stakeholders have expressly and painstakingly detailed the negative impact this rule will have on consumers who will lose access to the financial professional of their choice and the protected lifetime income products and strategies that can help ensure they do not outlive retirement savings.

We’ve shared data showing how a similar DOL rule in 2016 caused a loss of access to financial advice until a federal court vacated that harmful rule in 2018.

Now, IRI has new research demonstrating the value that financial professionals deliver to consumers – value that stands to be stripped away by the DOL’s misguided, unnecessary, and redundant proposed rule.

In a nutshell, retirees who maintain a relationship with a financial professional have more savings, less debt, and greater financial security than those who do not. The loss of these outcomes can cripple retirees’ chances to enjoy a financially secure and dignified retirement.

Our data shows that retirees who worked with financial professionals are far more likely to have followed a plan, with 64 percent having calculated a retirement savings goal before they retired versus less than one-third of those going it alone. The financial professional-supported group was also more likely to have a balanced portfolio of diversified investable assets, 64 percent versus 29 percent of do-it-yourselfers.

The preparation and guidance have paid off – 90 percent of retirees who work with financial professionals feel better prepared due to that relationship, and two-thirds believe their wealth is greater than it would have been without the help of a financial professional.

The DOL rule puts the retirement security of millions of workers and retirees working with a financial professional at significant risk. It’s not necessary, it’s not right, and it’s why IRI is continuing to fight this devastating proposal.

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 Contact: Dan Zielinski