How the US Could Solve Its Retirement Crisis

If you are a working stiff then you probably are looking forward to retirement so that you may pursue interests that so far you have neglected……right?

AS glamorous as retirement looks there is one small problem……very few Americans are set up to actually go into retirement……is there an answer to the problem?

Retirement accounts are gilt-edged investments that enrich the economy, the safety net and the social fabric.

Too many Americans are saving little to nothing for retirement. According to one study, 45 percent of working-age households “do not have any retirement account assets.” Congress could sharply improve the numbers by adopting dynamic scoring of retiree distributions. The move could lead to millions of new accounts, and a fairer sharing of the US’s retirement promise.

That promise was the whole idea behind a breakthrough reform over 40 years ago. Let’s see where it came up short, and how the country can still make good for those left behind.

In 1974, a far-sighted Congress created a new benefit for workers not covered by traditional pensions. It set up Individual Retirement Accounts (IRAs), combining pre-tax employee contributions with tax-deferred capital gains. A major sweetener, employer contributions, came later with 401(k)s.

Source: How the US Could Solve Its Retirement Crisis

I do not endorse everything I write about…..some times I am just doing the FYI thing…..

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3 thoughts on “How the US Could Solve Its Retirement Crisis

  1. There should be no such thing as a retirement crisis in the USA. Anyone smart enough to take advantage of all the advantages America offers people to work hard and to finally succeed and who can work through a few setbacks and some challenges can make the grade. Anybody who wants to put forth the effort can do it. The only poor people in a nation as filled with opportunities and educational possibilities and free assistance everywhere as America is are those who choose not to do anything with their lives or those who are challenged with some impossible or insurmountable physical or mental challenge.

  2. There is a similar retirement crisis building here in the UK. Too many people living longer, wit insufficient financial provision for their old age. Low wages, no-hours contracts, and many other factors have meant that they just didn’t earn enough to save anything substantial. If they want the votes of this growing ‘grey majority’, they are going to have to do something about it, and fast.
    Best wishes, Pete.

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