Saver's Credit - Tax Incentive for Retirement Savers 

April 26, 2022

The Saver’s Credit: A Tax Credit That Pays to Save for Retirement report provides an overview of the Saver’s Credit, a historical trend analysis, research findings from TCRS 22nd Annual Retirement Survey, and recommendations for public policy. Twenty years since its establishment, the Saver’s Credit has proven to be an important incentive for workers to save for retirement. However, many workers are inadequately saving and have a tenuous retirement outlook.

Policymakers have an opportunity to enhance and expand the Saver’s Credit, with ideas such as implementing an ongoing educational campaign to promote it, simplifying it, and making it refundable.

Important Note: Subsequent to the publication of this report, the SECURE 2.0 Act of 2022 was enacted. Beginning in 2027, the new law reimagines and replaces the Saver's Credit with the Saver's Match, a matching contribution from the government for retirement savers meeting income eligibility requirements.