Labor Department issues rule to crack down on bad retirement savings advice

The U.S. Department of Labor issued a final"fiduciary" rule on Tuesday that aims to raise investment-advice standards in retirement accounts.President Obama also tried to crack down on conflicts of interest among brokers, advisors, insurance agents and others who give retirement advice. That rule was killed in court.

In certain instances, conflicts of interest may allow financial professionals to recommend a transaction that pays them a higher fee but isn't necessarily best for the client. Such a dynamic can"chip away" at Americans' savings, Gomez said.Americans lose up to $5 billion a year due to conflicts of interest relative to one insurance product, an indexed annuity.

"The amount of money being rolled over is astronomical," said Andrew Oringer, partner and general counsel at the Wagner Law Group. In a memo issued ahead of the final rule's publication, the American Council of Life Insurers, a trade group, said the new regulation was shaping up to be"alarmingly similar to the Department's 2016 regulation" under President Obama.

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