Retirement USA: Looking Beyond the 401(k)
 |
USA Today reports on the meeting today of Retirement USA, a coalition that is “working for a universal, secure, and adequate retirement system to supplement Social Security.”
There’s no explicit mention of longer working lives in the group’s statement of principles. But appealing, accessible encore careers that combine continued income with social purpose could help meet the group’s goals. Incentives to spur the creation of such opportunities could deliver a double-return — improved finances for individuals and an infusion of human talent in high-need areas. Please add your own ideas by commenting below.
The Retirement USA initiative, launched last March, includes the Economic Policy Institute, the National Committee to Preserve Social Security and Medicare, the Service Employees International Union and the Pension Rights Center as well as the AFL-CIO, the National Caucus and Center on Black Aged and the National Consumers League.
Ross Eisenbrey, vice president of the Economic Policy Institute, laid out the rationale for the initiative at the launch event in March.
The facts are indeed grim. Nearly one-third of American households have no retirement savings at all, according to a McKinsey & Co. report. And among middle-income married couples who don’t have a pension and are nearing retirement, only 4% are likely to have enough money to last their lifetime, according to Ernst & Young.
- David Bank's blog
- Login or register to post comments
- by David Bank
Retirement savings
Rising health care costs pose another serious challenge for us, particularly seniors. The Social Security system, one of the institutions wherein most workers are applying for retirement savings, became the new paradigm of retirement in lieu of a pension once it was signed into law. However, it’s a growing problem that it is the default of the retirement options, and not many people can reliably depend on retirement savings – and Social Security is going broke – it will be bankrupt by or before 2040. People are encouraged to build up a 401(K) or other plan, as it will take lots of money to fix the Social Security system as it is now.