Celebrating 50 Years of Retirement Security with ERISA

At Secure Financial Future (SFF), our mission is simple: to ensure that the policies from Capitol Hill truly benefit the millions of Americans saving for retirement. Good policy can make a real difference, helping people better prepare and retire with confidence. One long-standing example of this is the Employee Retirement Income Security Act (ERISA), which marked its 50th anniversary this September.

In 1974, Congress passed ERISA to protect workers' retirement and health benefits. Signed into law on Labor Day of that year, it created safeguards for retirement plans and set important standards for companies to follow. It also paved the way for individual retirement accounts (IRAs), giving workers a new tool to save for retirement on their own terms. This law made it possible for everyday Americans to take control of their financial futures.

Thanks to ERISA, workers could start saving through traditional IRAs, and later Roth IRAs, with tax advantages that made saving easier. Several years after ERISA, changes in the tax code led to the creation of the 401(k), which transformed workplace retirement options. These plans, along with similar options for nonprofit and public sector workers, offered even more flexibility for building a nest egg.

IRAs and 401(k)s opened up new possibilities. Unlike pensions, which attempt to provide a fixed benefit for each retiree, these plans let people direct their own retirement investments, control the mutual funds and other vehicles they invest in, and let savers benefit from compounding returns. They also made it easier to change jobs without losing out on retirement savings—something that wasn’t possible with traditional pensions.

By 1990, Americans had saved over $1.5 trillion in IRAs, 401(k)s, and similar retirement plans. Today, that number has skyrocketed to over $25 trillion! This incredible growth shows just how effective these retirement tools have been in helping Americans plan for their golden years.

ERISA has proven that when lawmakers come together, they can create meaningful change. From the original ERISA law to the more recent SECURE Acts, both sides of the aisle have consistently supported policies that empower retirement savers. As we look to the future, it’s important that we keep this bipartisan spirit alive when thinking through any changes or improvements to our retirement system.

At SFF, we’re committed to building on the progress of the last fifty years. As we continue to advocate for policies that strengthen retirement security, we invite you to join us in ensuring that future generations can enjoy the same opportunities.