President Obama Address 09/05/09

[2:51] ..." retirement plan at work. And fewer than 10% of those without workplace retirement plans have one of their. We cannot continue on this course we certainly can't go back to an economy based on inflated profits"...

[4:17] ..." your account. With this change will make it easier for those without retirement plans to save the refunds as well. You'll be able to check a box on your tax return to receive your refund as savings. Third -- make it possible for poised to put payments for unused vacation and sick days into the retirement plans if they wish. Right now most workers don't have that option. And fourth the IRS and Treasury Department creating plain English easy"...

[5:08] ..." my budget I've proposed ensuring that nearly every American has access to retirement savings account through his or her job. This plan would make it possible for workers automatically enroll in IRAs through payroll contributions. And budget simplifies and expand the tax credit for millions of families. Matching half from the family's savings up to a thousand dollars per year and depositing the tax credit directly into retirement account. This difficult time for our country but I'm confident that we can meet the challenges we face and"...

[0:00]" As we spent time with family and friends this Labor Day weekend many of us will also be thinking about the state of working America. Yesterday we received a report showing that job losses have slowed dramatically. Compared just few months ago. Earlier in the week we learned that the manufacturing sectors posted its first gains in eighteen months. In the many of the banks that more money at the height of financial crisis -- now returning it to taxpayers with interest. These are only the most recent signs that the economy is turning around these signs little comfort to those who experienced the pain of losing your job in the previous month. War in the previous two years of this recession. That's why it's so important that we remain focused on speeding or economic. Throughout America today tens of thousands of recovery projects are underway. Repairing our nation's roads bridges ports and waterways. Renovating schools and developing renewable energy. We're putting Americans back to work doing the work America needs done in mostly in private sector jobs. But even as we take aggressive steps to put people back to work it's also important that we keep faith with -- men and women looking back on lifetime -- Hard working Americans who deserve to know that their efforts have resulted in a secure future including a secure retirement. This recession is not only led to loss of jobs but also the loss of six. The drop in home values for example has also met a drop in the value of the single largest investment most families. And the decline in the financial markets has led to a decline in the value for one k.'s and other sources of savings and retirement security. As a result over the past two years the American people have lost about two trillion dollars in retirement six. This carries -- painful toll. -- heard from so many who have had put off retirement come out of retirement to make ends meet. Effort from seniors who worked hard their whole lives but now. In the golden years aren't sure where termed pay the bills afford prescriptions. Or keep the home in which they raised a fair. And having too little in savings not only leaves people financially prepared for retirement. But also for whatever challenges life brings. -- places in jeopardy so many dreams from owning a home to attending college. The fact is even before this recession -- The savings rate was essentially zero while borrowing have risen and credit card debt has increased. Many were simply struggling to stay afloat as incomes were stagnant or falling and jobs were scarce that's important remember. But there were also those who -- beyond their means. And more broadly tens of millions of families have been for a variety of reasons unable to put away enough money for secure retirement. Half of America's workforce doesn't have access to a retirement plan at work. And fewer than 10% of those without workplace retirement plans have one of their. We cannot continue on this course we certainly can't go back to an economy based on inflated profits and maxed out credit carts. The cycles of speculative boom painful busts a system that put the interest of the short term ahead of the needs of long term. We have to revive this economy and rebuild its stronger than before and making sure the folks have the opportunity in the Senate to save. For home or college for retirement or rainy day is essential to that -- if you work -- and -- your responsibilities. This country is going to honor our collective responsibility to you. To ensure that you can save and secure -- retire. That's why we're announcing several common sense changes to help families put away money for the future. First we're gonna make it easier for small businesses to do what large businesses do. Allow workers to automatically enroll in a 41 K or an individual retirement account. We know that automatic enrollment has made a big difference in participation rates by making it simpler for workers to say. And that's why we're gonna expand it to more people. Second will make it easier for people to save their federal tax reports 100 million families receive. Today if you have a retirement account you can have your refund deposited directly into your account. With this change will make it easier for those without retirement plans to save the refunds as well. You'll be able to check a box on your tax return to receive your refund as savings. Third -- make it possible for poised to put payments for unused vacation and sick days into the retirement plans if they wish. Right now most workers don't have that option. And fourth the IRS and Treasury Department creating plain English easy to follow god as wells web site. To help folks navigate were often very complicated waters. Especially for workers changing jobs while often are punch or how best to continue saving for retirement. Because the rules ought to be written to encourage people to save instead of desperate. Also build on the steps by working with congress. As part of my budget I've proposed ensuring that nearly every American has access to retirement savings account through his or her job. This plan would make it possible for workers automatically enroll in IRAs through payroll contributions. And budget simplifies and expand the tax credit for millions of families. Matching half from the family's savings up to a thousand dollars per year and depositing the tax credit directly into retirement account. This difficult time for our country but I'm confident that we can meet the challenges we face and leave behind something better. There were ready to take responsibility for future once again as individuals and as a nation. I hope that all of you have the chance to enjoy this Labor Day weekend with family inference. But -- larger hope and expectation. Is that next Labor Day. Economic storms were weathering now we'll have given way to brighter and prosperous times. Thank you."