Biden Proposes New Retirement Rule to Protect Americans' Savings from Conflicted Advice

President Biden proposed a new rule to protect Americans' retirement savings from bad financial advice driven by conflicts of interest. This could help savers avoid losing tens of thousands in retirement.

The rule would require all financial advisers to act as fiduciaries, putting clients' interests first when advising on retirement. It closes loopholes around insurance products like annuities.

Advisers breaching their fiduciary duty under the new rule would face penalties including restitution and additional financial penalties.

The rule also aims to improve advice around 401(k) rollovers, ensuring one-time rollover advice is in savers' best interests.

Advocates say the rule will help Americans trust their financial advisers are giving advice that is solely in their best interests, not chasing commissions.