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The retirement system isn’t meeting today’s needs, let alone tomorrow’s. Concerns about the long-term stability of Social Security have shaken public confidence, and for many workers, personal savings options are limited or out of reach.

Congress has a real chance to fix our fractured retirement system in the new tax bill. But using retirement policy to offset tax cuts would be a mistake. Tax incentives for saving may cost money upfront, but they’re one of the few parts of the system that actually work. The real problem isn’t that too many people get a break for saving – it’s that too few can save at all.

Make saving easier

There’s broad agreement that our retirement system has blind spots. A full-time worker at a large company with a 401(k) and matching contributions is in decent shape.

But that’s not the norm. Tens of millions of workers, especially those employed by small businesses or working in part-time or gig roles, have no plan at all. And while legislation like the SECURE 2.0 Act has taken important steps to expand access, many people are still being left behind.

SECURE 2.0 does offer tax credits to help small businesses start retirement plans, but many still hold back due to legal and administrative hurdles. A better solution is to let employers offer payroll deduction IRAs without triggering complex rules. Removing that red tape would make it easier to help workers save, and more businesses would step up.

At the same time, Congress should streamline and strengthen automatic savings options. Currently, some states require employers to enroll workers in IRA programs, while others do not. This patchwork creates confusion and uneven access. A federal auto-IRA program would bring consistency and make retirement saving the default for millions of workers.

Another overlooked issue is what happens when workers change jobs. If they have small balances in their retirement accounts, usually under $7,000, the money often rolls into low-yield IRAs that barely keep up with inflation. Many just cash out, undermining long-term savings. Congress can fix this by allowing those accounts to be invested in higher-return options, a simple change that would make a big difference.

Make it better for independent workers

Independent workers face an even tougher path to retirement security. While options like solo 401(k)s and SEP IRAs exist, they’re complex and lack the support traditional employees get. Congress should let gig workers join Pooled Employer Plans, giving them access to lower costs, professional management, and a real chance to save on their own terms.

Modernizing retirement rules should also reflect how people actually live and age. Required minimum distributions, or RMDs, currently force retirees to start drawing down their accounts at age 73 — even if they don’t need the money. For retirees with modest balances, this can interfere with careful planning. Congress should consider waiving RMDs for smaller accounts, letting people manage withdrawals based on their own financial situation, not arbitrary timelines.

We should also think about how to build stronger saving habits from the very beginning. Currently, only people with earned income can contribute to Roth IRAs. That shuts out children, students, and others who could benefit enormously from starting early. A “Child IRA” structure, where parents can contribute modest amounts on behalf of their children, could encourage lifelong saving.

Through all of this, Congress must protect the tax incentives that drive retirement saving in the first place. These incentives aren’t giveaways to the wealthy, they’re the single biggest reason many Americans contribute to retirement plans at all.

Weakening or eliminating them would reduce participation and leave more people unprepared for retirement. That’s a step backward at exactly the moment we should be moving forward.

Make a system for everyone

The U.S. retirement system has made progress, but it’s far from the place it must be. The real task now is not to dismantle what works, but to make saving easier, expanding access to everyone, modernizing outdated rules and ensuring the system reflects how Americans work and live today.

Congress has an opportunity to build a retirement system that actually works for everyone. That’s a goal the country can’t afford to miss.

Peter J. de Silva, author of “Taking Stock: 10 Life and Leadership Principles from My Seat at the Table” and a senior fellow of Harvard University’s Advanced Leadership Initiative, is CEO of Pittsburgh-based IRALOGIX.

This year promises to bring significant developments in the IRA and small business retirement space as a convergence of policy shifts, tax reform discussions and evolving workforce demographics reshape the 2025 retirement landscape. Advisors and wealth managers should pay careful attention to the changing environment to best position their clients for long-term success.

Of the numerous Secure 2.0 provisions reshaping the IRA and retirement plan landscape, two are already in effect. As of Jan. 1, 401(k) and 403(b) plans that were created after Dec. 30, 2022 are now required to include automatic enrollment and automatic escalation features.

This change will almost certainly lead to a greater number of automatic rollovers going to protected IRAs, as individuals who leave their place of employment often don’t make an election regarding their plan accounts when their balance is small.

Also new for 2025 is the “super catch-up” contribution that allows retirement savers aged 60 to 63 to bolster their savings at an important period in their financial planning.

Complicated catch-ups

Starting in 2026, all catch-up contributions from plan participants who earned more than $145,000 during the previous year must be made on a Roth basis, which presents a major complication for plan sponsors and recordkeepers. The bright side for small employers is that SIMPLE IRA plans are exempt from the Roth catch-up requirement, and the super catch-up is available to SIMPLE IRA plans.

To help implement the legislative changes made by Secure 2.0, the Department of Labor and the IRS still have regulatory agendas to fulfill. For the IRS, this includes guidance on rollovers from 529 college savings plans to Roth IRAs; updates to existing IRA regulations, including Roth, SEP, and SIMPLE IRAs; and the new saver’s match coming in 2027.

Also on the IRS agenda are safe harbor rules for missing participants and uncashed checks. Advisors should also be aware that the IRS regulations implementing the Secure 1.0 changes to the beneficiary distribution rules became effective Jan. 1, 2025, while some of the Secure 2.0 beneficiary changes go into effect in 2026.

Guidance delayed

Historically, newly installed presidential administrations have put a temporary “regulatory freeze” on pending rules, which may delay the release of IRS and DOL guidance. Moreover, this administration has ordered agencies to identify 10 regulations to eliminate for every new regulation proposed in fiscal year 2025, and that the total cost of new and repealed regulations be less than zero.

Although the DOL has a much shorter list of yet-to-be-issued Secure 2.0-related guidance, it must still decide how to proceed with its newest investment fiduciary regulations.

Last year, two courts postponed the effective date of these new rules pending the outcome of  two lawsuits accusing the DOL of overstepping its authority by broadening the definition of fiduciary advice. The DOL first appealed that decision but in February requested the appeals process be put on hold for 60 days while the new administration determines whether to continue pursuing the appeal.

‘Rothification’?

Financial advisors should also pay close attention to tax reform as a key element of policy change impacting retirement savings. The end of the 2017 tax cuts will be a serious fiscal issue for Congress as it finds ways to replace the revenue losses accompanying an extension of these cuts. Lawmakers will also need to make up for the cost of other cuts and spending that the administration wants, such as a proposal to end income tax on Social Security retirement payments.

With the retirement savings incentives typically targeted as a source of tax revenue, the Trump administration will not likely want to limit contributions on a pretax basis or reduce the account balance that can be held.

Instead, “Rothification” could again be invoked as a means of boosting short-term tax revenue. Broadly, this means requiring that certain contributions be made as Roth after-tax contributions rather than pretax, creating immediate tax revenue for the federal government. It is important that financial advisors monitor legislative developments and talk with their clients about ways to maximize tax-advantaged savings in this changing environment.

By staying ahead of trends and abreast of policies, financial advisors and wealth managers can help clients optimize retirement savings strategies. Advisors who remain proactive and adaptable will be best positioned to serve their clients effectively in 2025 and beyond.

Lowell Smith Jr. is Chief compliance officer and co-founder, IRALOGIX

Retirement Planning Falls Short for Some, Underscoring Gap Between Intent and Action

Many Americans Unprepared for Life After Work 

Healthcare is Retirement Wild Card

IRALOGIX, the retirement industry’s leading fintech pioneer, today announced the debut of the IRALOGIX Retirement Readiness Index (IRRI), a comprehensive national benchmark built to track Americans’ preparedness to retire with financial security and peace of mind.

In its inaugural Q1 2025 evaluation, the IRALOGIX Retirement Readiness Index (IRRI), which measures Americans’ retirement preparedness across five critical areas, reported a national Retirement Readiness Score of 45.8 out of 100. Scores below 50 fall into the ‘Moderate Risk’ zone, indicating that many pre-retirees may face uncertain futures without adequate savings, healthcare coverage, or financial confidence to sustain themselves through retirement.

The IRRI distills the complex reality of retirement planning into a single, powerful number that will trend over time. Based on nationally representative survey data, the IRRI measures readiness across five critical dimensions: Savings and Investments, Healthcare Readiness, Lifestyle and Spending, Emotional Well-being, and Economic and Policy Confidence.

“This score is a wakeup call for America’s households, employers, and policymakers,” said Peter J. de Silva, CEO of IRALOGIX. “It’s not just a number, it’s a mirror held up to the financial anxieties, gaps in planning, and uncertainty that millions of Americans face as they approach one of life’s most important milestones: retirement. Our data shows that too few are prepared for both the financial and personal impact of aging-related issues, and are struggling with saving enough, planning for healthcare, and trusting that essential benefits like Social Security will be there when they need them. We believe the path to retirement readiness begins with awareness, and the IRRI is a step towards securing a more stable future for everyone.”

Retirement Readiness: Potential vs. Reality

When analyzing the results, each retirement readiness category (such as Healthcare Readiness or Savings and Investments) was assigned a maximum number of points it could contribute to the overall Retirement Readiness Score. This represents the “full potential” if Americans were perfectly prepared in that area. Based on survey responses, the “potential achieved” percentage tells us how much of that maximum was actually reached. The lower the percentage, the further away Americans are from being fully prepared in that dimension.

 

Where Americans Are Falling Behind: The Weakest Dimensions

 

Healthcare Readiness – 42.1% of Potential Achieved

Out of a possible 15 points that Healthcare Readiness could contribute to the national score, Americans only reached 6.3 points. This equates to just 42.1% of the ideal score in this area, making it the lowest-performing dimension.

What this means: Many lack a solid plan to manage healthcare costs in retirement, especially long-term care, which can quickly erode savings. Key gaps were noted in uncertainty about whether Medicare will meet future needs, absence of a plan for handling unexpected medical expenses, and fear of financial ruin from chronic illness or elder care. In an October 2024 survey on decumulation in retirement conducted on behalf of IRALOGIX, 37% of retirees said healthcare costs were their biggest withdrawal challenge, reinforcing the idea that healthcare isn’t adequately prioritized, either before or during retirement.

Savings and Investments – 43.2% of Potential Achieved

This category has the biggest influence on retirement readiness, with a maximum of 35 points available. Yet, respondents only realized 15.1 points, reaching just 43.2% of the potential in this crucial area.

What this means: Despite its importance, many are not saving enough or don’t know if their savings will last through retirement. Key gaps included low confidence in current savings, lack of a written retirement plan, and few respondents meeting regularly with financial advisors for retirement advice.

Lifestyle and Spending – 46.5% of Potential Achieved

Out of 15 possible points, respondents only realized 6.97 points in this area. That’s just 46.5% of the potential, signaling that Americans are underprepared to manage day-to-day expenses in retirement.

What this means: Many Americans have not fully transitioned from an earning mindset to a spending and sustaining mindset for retirement or created a detailed retirement budget that accounts for inflation, healthcare, or changes in income sources. Key gaps were noted in a heavy dependence on non-guaranteed income sources, and concern that working during retirement will be necessary, not optional. Survey responses also suggest that pre-retirees are adjusting their definition of retirement. For many, the idea of fully stepping away from work is no longer realistic or even desirable. Instead, they’re anticipating a retirement that includes part-time work, consulting, or phased retirement. Whether driven by financial pressure or a desire to stay engaged, this shift underscores the need for more flexible and personalized retirement planning.

Where Americans Are Doing Better: The Strongest Dimensions

Economic and Policy Confidence – 50.8% of Potential Achieved

Americans achieved 10.2 out of 20 possible points in this area, making it the highest among all categories, though still well below ideal.

What this means: There’s moderate confidence in navigating future economic and policy changes, but inflation remains a major concern. Notable insights included that half of the respondents expect Social Security to remain intact, many are using tax-advantaged retirement savings tools, but not fully, and widespread concern that inflation will erode retirement savings.

Emotional Well-being – 48.3% of Potential Achieved

Americans achieved 7.25 out of 15 points here, showing moderate preparedness for the emotional side of retirement.

What this means: While many respondents have strong social networks and plans for engaging in activities, others haven’t communicated their retirement plans with family, which can create stress down the line. Notable insights include positive scores in social support and hobbies and lower scores in family communication and transition planning.

“Retirement readiness is not just a personal issue, it’s a societal one,” said Peter de Silva. “When individuals are unprepared for retirement, the ripple effects are felt across families, workplaces, communities, and the broader economy. The IRRI was created to do more than just measure, it was designed to spark a national conversation, shine a light on the areas where Americans are falling short, and provide a roadmap to take action. With individuals facing longer lifespans, rising healthcare costs, and economic uncertainty, the IRRI will remind policymakers, employers, and financial institutions to work towards better solutions.”

Added Pete Littlejohn, President of IRALOGIX, “The good news is that retirement readiness isn’t out of reach, but it does require action. Americans can start by getting informed, setting clear goals, and using the tools available to them, from workplace retirement plans to personal savings and trusted financial advice. Preparation is power, and every step taken today helps build the confidence and security needed for tomorrow.”

Looking Ahead

IRALOGIX will redeploy the IRRI to track trends over time to elevate the national conversation around retirement readiness, paving the way for Americans to retire with dignity and security. 

Methodology

The IRALOGIX Retirement Readiness Index score is a data-driven measure of how prepared Americans are for retirement, expressed on a scale from 0 to 100. The score is derived from a nationally representative survey in which respondents answered 20 questions across five dimensions. Each question was rated on a 1-5 scale, with responses converted to a 0-100 score and weighted according to its importance within its category. The five dimensions were also weighted based on their overall contribution to retirement readiness, with financial preparedness emphasized the most. Each respondent’s weighted scores were totaled to generate an individual readiness score. The national Retirement Readiness score reflects the average of all responses. Risk zones in the IRRI are based on common indexing practices and are: High Risk (0-34.9), Moderate Risk (35.49.9), Caution Zone (50-64.9), Prepared (65-79.9), and Retirement Ready (80-100).

The survey was conducted in late March 2025 on behalf of IRALOGIX. Respondents were 62.67% male and 37.33% female, drawn from a national sample of pre-retirees.

To schedule an interview or for more information on the survey results or the index, don’t hesitate to get in touch with Scott Sunshine.

About IRALOGIX™

IRALOGIX is redefining the $14.5 trillion IRA marketplace through its industry-leading
technology-enabled, fully paperless, white-label IRA record-keeping and technology solutions.
The company’s proprietary technology solutions enable any financial institution to easily
customize its IRA offering and compete effectively in all segments of the IRA market, regardless
of account size. Through modular technology, institutional clients have the choice to use their
internal investment or advisory capabilities or select from key industry-leading providers.
IRALOGIX complements your market strategy, streamlines your IRA service options, and helps

you expand your business across all segments of the industry, profitably. For more information,
please visit www.iralogix.com.

PITTSBURGH, PA – April 2, 2025 – IRALOGIX, a leading provider of cloud-based, fully paperless IRA recordkeeping and technology solutions for the wealth management industry, has been named to FinTech Global’s prestigious 2025 WealthTech100 list. This is the third consecutive year the company has earned this honor.

The WealthTech100 recognizes companies tackling some of the biggest challenges in the investment industry, from the push for digital transformation to shifting client expectations and the effects of the intergenerational wealth transfer. The 2025 list was narrowed down from more than 1,200 candidates by a panel of industry experts, who selected 100 firms leading the way in innovation and impact.

IRALOGIX was selected for its work modernizing the retirement sector’s technology infrastructure, specifically for providing scalable, cloud-based technology that allows financial institutions to deliver IRA solutions without relying on dated systems.

“Being named to the WealthTech100 again is a strong validation of the work we’re doing to modernize a part of the industry that’s been slow to evolve,” said Peter J. de Silva, CEO of IRALOGIX. “Most retirement infrastructure still runs on legacy systems that limit flexibility and drive up costs.

Our platform replaces those inefficiencies with a scalable, compliant solution that’s future-focused, giving our partners the tools to deliver a client experience that reflects the best of modern financial technology.”

IRALOGIX’s technology enables banks, recordkeepers, and advisory firms to offer a wider range of IRA products with greater automation and flexibility. As many firms reevaluate their technology stacks, retirement services are becoming a growing area of focus, especially with new generations inheriting wealth and expecting modern digital experiences.

“This year’s selection process was more competitive than ever,” said FinTech Global director Richard Sachar. “With clients expecting hyper-personalized digital experiences, and global events continuing to test market resilience, firms can no longer rely on legacy systems or reputation alone. The 2025 WealthTech100 will help senior decision-makers in the investment industry identify the solution providers who can transform their businesses and help them stay ahead in this highly dynamic market.”

The full WealthTech100 list is available at www.WealthTech100.com.

California wildfires have destroyed lives, homes, and livelihoods. The extent of the destruction and costs will continue to expand. IRALOGIX extends our deepest sympathies to all who are affected and our gratitude to all who are sending aid and risking their lives to help.

It’s little consolation, but it may be helpful in the coming weeks to be aware of the retirement savings and tax relief available.

Qualified Disaster Recovery Distributions

The SECURE 2.0 Act made it easier for those affected by a federally declared disaster to access their retirement savings — with tax relief — in a disaster situation.

Those who qualify may

• Withdraw up to $22,000 from an IRA or an employer-sponsored retirement plan that allows for disaster distributions
  • If a plan does not offer this distribution trigger but a participant is otherwise eligible to take a distribution, the participant can still claim the tax relief when filing their tax return.
• Claim an exemption from the additional 10% tax on early distributions (pre-age 59½)
• Spread the taxation on the disaster distribution in equal parts over three tax years
• Repay any or all of the distribution amount to an IRA or retirement plan within three years of the day after you received the distribution (and reclaim any tax paid)*
• Have increased retirement plan loan limits up to $100,000 and a one-year extension on repayment

*Required minimum distributions (RMDs) and beneficiary payments may be included in a disaster distribution for tax purposes but may not be repaid to an IRA or retirement plan.

 

Individuals qualify for these special distributions if their principal residence is in a major disaster area (currently Los Angeles County), and they sustained an economic loss due to that disaster. An economic loss includes

• Being displaced from a principal residence

• Loss or damage to or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other causes
• Lost income due to temporary or permanent layoff

 

A Qualified Disaster Recovery Distribution must be taken within 179 days after the disaster declaration. For Los Angeles County, the deadline is July 6, 2025.

Extended Deadlines for Tax Filings and IRA Contributions

The IRS has announced general tax relief for individuals that reside or have a business in Los Angeles County and are affected by wildfires and straight-line winds that began on January 7, 2025. These taxpayers now have until October 15, 2025, to file various federal tax returns and make tax payments that would otherwise have been due between January 7 and October 15, 2025:

• Individual income tax returns and payments normally due on April 15, 2025
• 2024 contributions to IRAs and health savings accounts for eligible taxpayers
• 2024 quarterly estimated income tax payments normally due on Jan. 15, 2025, and estimated tax payments normally due on April 15, June 16, and Sept. 15, 2025
• Quarterly payroll and excise tax returns normally due on Jan. 31, April 30 and July 31, 2025
• Calendar-year partnership and S corporation returns normally due on March 17, 2025
• Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025
• Calendar-year tax-exempt organization returns normally due on May 15, 2025

 

This same relief will be available to any other counties added to the disaster area by the Federal Emergency Management Agency (FEMA).

For More information

• Current list of major disaster declarations: gov/Disaster
• IRS disaster relief by date or state: Tax relief in disaster situations

• FAQs on disaster distributions: Disaster relief FAQs: Retirement plans and IRAs under the SECURE 2.0 Act of 2022
• Details on tax-related actions qualifying for relief: assistance and resources for individuals and businesses

• IRS disaster hotline: 866-562-5227