US tax reform looks to impact many areas of our lives, and one of these could be the way Americans save and invest for retirement. As we wait for Congress to refine and vote on the latest tax proposals, Drew Carrington, head of Institutional Defined Contribution at Franklin Templeton Investments, breaks down how lawmakers might target retirement dollars for tax revenue. And, he outlines potential changes to our current retirement system that he believes might not be in the best interests of all future retirees.

Here are some highlights of the views of speakers represented in the podcast:

  • Congress uses a 10-year budget scoring window. The problem with many current retirement plans is that the tax revenues occur far in the future, in many cases beyond 10 years. Some lawmakers are looking to change the nature of the contributions from pre-tax to after-tax so they can collect the revenues sooner rather than later.
  • The retirement system as we see it today serves tens of millions of Americans, so before changes are made to it, we think it’s important to ensure that the potential outcome enhances retirement security.
  • Ultimately we would not like to see big material changes to the retirement system that are made for accounting reasons and not with the goal of improving the retirement system more broadly.
  • Even with the success we have seen in retirement plans since 401(k)s and 403(b)s came into existence, many people still have a fair amount of anxiety about being able to save effectively for retirement.


Host/Richard Banks: Hello and welcome to Talking Markets with Franklin Templeton Investments: exclusive and unique insights from Franklin Templeton. I’m your host, Richard Banks. Ahead on this episode: high-stakes debate in Washington on tax reform raises concerns about possible changes to retirement plans.

Host/Richard Banks: Drew Carrington, head of Institutional Defined Contribution at Franklin Templeton Investments, breaks down how lawmakers could target retirement dollars for tax revenue. Speaking with Mr. Carrington is Michael Doshier, Franklin Templeton’s vice president of Retirement Marketing. Michael, take it away.