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How would the changes impact you?

The additional 16% capital requirement proposed by a trio of regulators — the Federal Reserve, Federal Deposit Insurance Corp. (FDIC) and Office of the Comptroller of the Currency — could force banks to trim services, raise fees or both, according to Solomon.

Speaking at the Financial Times banking conference in London — just days ahead of the Nov. 30 deadline to comment on the proposed rules — the Goldman exec said: “I don’t think you’re materially changing the safety and soundness in the way that matters compared to the friction and cost.”

Solomon worries that mandating banks to keep a higher percentage of assets liquid will impact pension managers’ abilities to lend out their securities.

Securities lending is a common source of extra income for pension funds. By lending out their securities, funds can earn fees and potentially grow their investment returns — which is a boon for retirement savers. If banks can’t participate in as much securities lending — due to the regulatory requirement to hold more liquid assets, like cash — pension funds could suffer a drop in returns.

With more limitations on how they invest and make money, banks may also have to increase their costs to lend money or provide other services to consumers.

“You have to do a really thorough cost-benefit analysis,” said Solomon. “I don’t think that’s been done.”

While the new rules, if approved, wouldn’t come into effect until mid-2028, for any Americans who worry how this might affect their retirement savings, now’s the time to get your finances ready. Here are a few ways to set your finances up to ride out whatever the future brings.

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Bolster your retirement security

If you’re worried about cash flow in retirement, the last thing you want to do is start this new stage with a mountain of debt. Your nest egg is meant to help you live out your golden years in comfort and security; not pay down the debts you accrued in your working life.

If you’ve got several sources of expensive debt and multiple lines of credit to take care of, you could try negotiating with your lender for better terms and conditions, or consider a debt consolidation plan that keeps you on track and with a lower interest rate.

If you’re more worried about the longevity of the U.S. banking system and the health of your retirement savings, consider finding ways to diversify your portfolio away from traditional cash, stocks and bonds.

Some popular alternative investments include: real estate (through buying shares in REITs or crowdfunding platforms), precious metals, like gold; and collectible items, like art and wine. This may seem counterintuitive when saving for retirement, but these assets typically appreciate over time and are considered a good hedge against inflation.

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Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

About the Author

Bethan Moorcraft

Bethan Moorcraft

Reporter

Bethan Moorcraft is a reporter for Moneywise with experience in news editing and business reporting across international markets.

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