Towards A 21st Century Retirement System

Poll after poll suggests that working Americans are deeply concerned about their future retirement income, and a recent analysis conducted by the Center for Retirement Research at Boston College suggests that those fears are well founded. The retirement income deficit–the difference between what Americans (ages 32-64) have set aside for retirement and what they should have set aside at this time in their lives—is a staggering $6.6 trillion.  On average, that works out to a retirement deficit of about $90,000 per American household.

The flip side of the retirement income deficit is that retirement savings has not been generating the kind of aggregate national savings that we need to finance capital expansion and economic growth.  For the moment, that’s not a problem: economists are more concerned about expanding spending than savings. But in the long term, countries need high rates of saving to maintain prosperity, and the U.S. is no exception.

Meanwhile, our current patchwork system of retirement plans is falling apart at the seams. Pension coverage has been declining for decades and the “do-it-yourself” approach embodied in many 401(k) plans is a demonstrated failure. Too many workers are withdrawing money from their already depressed 401(k) balances to cover the cost of college education and other household needs, while high administrative costs and poor investment decisions are eroding the returns of those have tried diligently to save for retirement.

So where do we begin in designing a 21st century retirement system for American workers?  We should start with three overarching goals–universal coverage, adequacy, and security—and recognize that we have a long ways to go.

Presently, only about half of the private workforce is enrolled in an employer-sponsored retirement plan, and only one out of five have a traditional pension.

Even before the Great Recession, it was evident that our excessive reliance on individual retirement accounts was not working.  In 2007, just half of all families had an IRA or a 401(k)-type retirement plan and the median level of savings was just $45,000.  It’s no wonder that half of American households are headed towards an inadequately funded retirement.

Other countries, however, have faced similar challenges.  In Australia a national “superannuation” program was introduced in 1992 by the Labor government.  Employers were required to contribute 3 percent of payroll.  At the outset, the plan was strongly opposed by small businesses, but ten years later, employers were contributing 9 percent, and the program was a widely applauded success. By 2006 Australian workers had more money invested in managed funds per capita than workers in any other country. The impact on the economy?  Between 1994 and 2004, Australia’s per capita GDP increased by an impressive 2.5 percent a year, significantly faster than 1.7 percent pace recorded between 1984 and 1994.

In the Netherlands, employers have developed a popular new “collective defined contribution plan,” a hybrid of the traditional pension plan and defined contribution plans. Designed to minimize the risks borne by businesses, the employer has a fixed contribution and no additional obligations if the plan should be come underfunded. Employees receive an annual notice outlining what benefits they have accrued and what benefits they will receive if they continue working to age 65.

Neither of these approaches is perfect.  The Australian superannuation system does not pay an annuitized benefit; it pays a lump sum.  As a result, some retirees outlive their benefits.  The Netherlands approach, on the other hand, does not guarantee benefits; when the stock market declines, benefits can be reduced.  Both, however, have boosted national savings and increased retirement security.  Both countries opted for a better approach to retirement security, and so should we.

In designing a system for the United States, we should begin by recognizing the need for shared responsibility.  Employers, employees and government should all have a role.  Retirement USA, a coalition of organizations representing workers and retirees, has rallied around that approach.  The group argues, and rightly so, that employers and employees should both contribute, and that government should subsidize the contributions of lower-income workers.  They propose that contributions be pooled and professionally managed to ensure greater adequacy and security for the workers who need it most.  They also recommend that benefits should be portable and the whole system professionally managed.  These are principles worth building upon.

More than anything, what we need today is bold thinking.  Seventy-five years ago, in the midst of the Great Depression, we created a Social Security system that has evolved into the most successful anti-poverty program ever devised.  Today, we have an opportunity to create a whole new approach to retirement security, one that will serve the interests of both workers and the economy.  The polls suggest that voters are eager and ready for such a new direction; what’s lacking is the political vision and leadership.

This blog entry was written by Robert Walker who formerly served as Legislative Counsel for AARP and presently is a consultant to the Pension Rights Center.  This blog entry is cross-posted on CenteredPolitics.com.

Comments

master agen bola

Panduan lengkap untuk mengakses akun member yang telah bergabung dengan master agen bola disini.

situs judi bola terbesar

agen situs judi bola terbesar dan terpercaya di Indonesia yang menawarkan fasilitas permainan judi lengkap hanya dengan 1 akun.

sbobet 88

bola sbobet 88 online dan terpercaya akan membawa anda pada kekayaan yang lumayan besar dan sangat maksimal.

agen judi bola terbaik

Agen Judi bola, agen judi bola terbaik, agen bola terpercaya, bandar bola, agen sbobet, agen casino, agen bola tangkas, agen togel, bandar taruhan bola

pasaran judi bola

Semua bursa bola yang ada disini akan secara otomatis berganti setiap harinya menyesuaikan pasaran judi bola yang berlaku pada hari ini di setiap situs

bandar online

bandar online adalah bandar bola, casino, tangkas, hasil togel dan poker online terpercaya. Minimal deposit 50 ribu.

prediksi bandar bola

prediksi bandar bola hari ini berikut info jitu tips dan skor yang pertama di Indonesia, meliput beragam pertandingan sepakbola

agen taruhan bola terpercaya

agen taruhan bola terpercaya untuk Judi Bola, Taruhan Bola, adalah bandar bola dan agen SBOBET terpercaya

judi bola online sbobet

Cara Mendaftar judi bola online sbobet dan Casino Online Terpercaya Indonesia ( Rupiah) menggunakan BRI, BCA, Mandiri dan BNI sangatlah mudah

agen bola 88

Situs atau Web site agen bola 88 Terpercaya, Bola88 Judi Online Bola Casino Terbesar dan Terpercaya.

judi bola online terbaik

Gobetx Situs judi bola online terbaik di Indonesia. Selalu setia melayani anda pecinta Judi online untuk pembuatan akun, deposit dan withdraw di tempat Judi online terbaik.

tangkas game

338A menyediakan permainan judi bola tangkas game online terbaik, global system, fair, no lock. Berhadiah mingguan dan Super Jackpot.

web judi online

Situs web judi online mygobetx adalah salah satu dari situs / website terbaik yang berbasis di Philipina yang memungkinkan anda bebas bermain dengan uang asli

bandar bola online terpercaya

Situs Taruhan Judi bandar bola online terpercaya di Indonesia, Agen Bola Terbaik, Agen Casino Online, Agen Judi Poker Online.

agen bola 338

agen bola 338A Online, Bandar Bola Online, Web Taruhan Bola, Agen Baccarat Online, Agen Sbobet Ibcbet 338A

skor bola online

skor bola online langsung dan hasil pertandingan sepak bola di gelandangbola.com menampilkan lebih dari 500 liga sepak bola.

daftar judi bola

Cara daftar judi bola menggunakan rekening bank BCA, BNI, BRI dan Mandiri sangatlah mudah dan Gampang.

judi bola sbobet

Cara daftar judi bola sbobet menggunakan rekening bank BCA, BNI, BRI dan Mandiri sangatlah mudah dan Gampang.

agen judi bola sbobet

mygobetx.com Merupakan agen judi bola sbobet dan situs Taruhan bola setara SBOBET. Pendaftaran Member Cepat & Mudah.

agen togel terpercaya

gosdsb.com agen togel terpercaya Singapore Pools, Agen Togel hongkongpools, Bandar Togel Online Terbesar. Selain aman dan terpercaya gosdsb juga memberikan jaminan pembayaran 100%

bandar judi bola online

Agen SBOBET Indonesia adalah website support dari salah satu Agen Judi Bola atau bandar judi bola online & aneka Judi Online lainnya.

online bola

Situs atau Web site Agen Judi Bola 88 Terpercaya, Bola88 Judi online bola Casino Terbesar dan Terpercaya.

web judi bola

mygobetx.com Merupakan web judi bola dan situs Taruhan bola setara SBOBET. Pendaftaran Member Cepat & Mudah.

situs judi bola terbaik

mygobetx.com agen situs judi bola terbaik di Indonesia yang menawarkan fasilitas permainan judi lengkap hanya dengan 1 akun.

agen bola terbesar

Situs Taruhan Judi Bola Online Terbesar dan Terpercaya di Indonesia, agen bola terbesar, Agen Casino Online, Agen Judi Poker Online.

bola online terpercaya

mygobetx.com Merupakan Agen Judi bola online terpercaya dan situs Taruhan bola setara SBOBET. Pendaftaran Member Cepat & Mudah.

agen betting

Selamat Datang di mygobetx.com, agen betting Online Terpercaya & Terbesar, Dalam Rangka Menyambut Natal & Tahun Baru,

prediksi bola online

Dapatkan prediksi bola online Skor Jitu , Berita Bola Akurat, Jadwal Pertandingan dan Bursa Taruhan dari Agen Judi Online Terpercaya.

prediksi agen bola

prediksi agen bola Gratis untuk anda penggemar taruhan bola online di internet.

daftar judi bola online

Cara daftar judi bola online menggunakan rekening bank BCA, BNI, BRI dan Mandiri sangatlah mudah dan Gampang.

agen casino sbobet

mygobetx.com Agen Bola Terpercaya, agen casino sbobet, Agen Judi Online, Agen Tangkas, Bandar Bola Terbaik, Taruhan Judi Bola

casino sbobet

mygobetx.com Agen Bola Terpercaya, Agen casino sbobet, Agen Judi Online, Agen Tangkas, Bandar Bola Terbaik, Taruhan Judi Bola

bandar judi

gosdsb.com Situs Agen bandar judi Online Terpercaya Indonesia, bergabung bersama agen togel dan bandar togel hanya di mygobetx.com

bola togel

Prediksi Keluaran Judi Nomor Angka bola togel Singapura sgp Jakarta Online Hari ini, Bola gelinding, segera bergabung dgn kami.

taruhan bola terpercaya

Mygobetx.com situs taruhan bola terpercaya di Indonesia yang menawarkan fasilitas permainan judi lengkap hanya dengan 1 akun.

situs taruhan bola online

Mygobetx.com situs taruhan bola online terbesar terpercaya di Indonesia yang menawarkan fasilitas permainan judi lengkap hanya dengan 1 akun.

judi on line

Mygobetx.com situs judi on line aman dan terpercaya dengan ijin resmi. Live Kasino, Togel, Poker, E-games & Judi Bola. BIG Promo.

agen judi terpercaya

Mygobetx.COM adalah Situs Taruhan Judi Bola Online Terbesar dan Terpercaya di Indonesia, Agen Bola Terbaik, Agen Casino Online, agen judi terpercaya Poker Online.

bandar judi online

mygobetx.com adalah Web Agen Judi Bola Terpercaya bandar judi online Agen Casino Terbesar dan Terpercaya.

agen judi bola online terpercaya

mygobetx.com Merupakan agen judi bola online terpercaya dan situs Taruhan bola setara SBOBET. Pendaftaran Member Cepat & Mudah.

sbobet bola

sbobet bola adalah pusat penyengara Judi Online, Live Casino Online, Togel Online yang terpercaya di Asia

agen bola indonesia

Mygobetx.COM adalah Situs Taruhan Judi Bola Online Terbesar dan Terpercaya di Indonesia, agen bola indonesia Terbaik, Agen Casino Online, Agen Judi Poker Online.

agen bola online terpercaya

mygobetx.com Merupakan agen bola online terpercaya, Judi Bola Online dan Taruhan SBOBET Casino.

bet bola

mygobetx.com merupakan situs bet bola dengan pasaran terbaik, Live Casino dan Texas Poker Terbaik di indonesia.

prediksi judi bola

prediksi judi bola dan Bursa Pertandingan Sepakbola Terkini. Pasang Taruhannya Melalui Agen Judi bola terpercaya seperti mygobetx.com

website judi bola online

Beberapa hal yang dapat menjadi ke khawatiran utama terkait keamanan bermain website judi bola online adalah kecurangan yang di lakukan situs situs yang tidak kompeten

daftar agen bola terpercaya

daftar agen bola terpercaya, Agen SBOBET, Casino Online 338A, Tangkas Net, togel.

taruhan online

Rasakan Keamanan Bermain taruhan online via Agen Judi Online .Dapatkan Promo Menarik.Agen Bola Terpercaya Sejak 2006 .

agen judi online terpercaya

Daftar situs agen judi online terpercaya di Indonesia lengkap dengan tips-tips menarik dalam bermain berbagai permainan judi online.

situs judi bola terpercaya

mygobetx.com agen situs judi bola terpercaya di Indonesia yang menawarkan fasilitas permainan judi lengkap hanya dengan 1 akun.

Post new comment

  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.
Refresh Type the characters you see in this picture. Type the characters you see in the picture; if you can't read them, submit the form and a new image will be generated. Not case sensitive.  Switch to audio verification.