Secure 2.0 is bringing 401(k) coverage to part-time Workers in 2024

Research shows that workers are far more likely to save for retirement when they have access to employer-sponsored contribution plans. And since part-time employees are typically ineligible, they’re at a major disadvantage when it comes to socking away funds for the future.

Until now, that is: Under the SECURE 2.0 Act, a sweeping set of changes to the laws governing retirement plans, companies are now required to provide 401(k) coverage to many  part-time employees. The provision, which went into effect Jan. 1, allows workers who have logged at least 500 hours per year for three years in a row  can participate in their company’s retirement benefits plan. Next year, the required length of service will decrease to two consecutive years.

The change could make a significant difference for part-timers in a retirement landscape so reliant on personal savings. A 2016 study from Pew Charitable Trusts found that almost three-quarters of workers participate in retirement savings plans when it's sponsored by their employer.

You can find out more about how SECURE 2.0 is changing retirement by reading my story from Money’s uber-helpful 2024 financial checklist.

— Mary Ellen Cagnassola, Money reporter

A good chunk of retirement savers 50 and up don’t want any help with planning, according to a new survey from AARP. Over 40% of respondents in this age group said they prefer to do their retirement planning themselves or let their spouse handle it.

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• Speaking of part-time workers, most of them are women, which means they face additional hurdles in saving for retirement.
• A new study found that the financial challenges faced by lower middle class Americans nearing retirement leads to a host of negative health consequences.
• The first year of retirement can be difficult, but here’s how a Wall Street Journal columnist and his wife aim to make the second year better.

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