Initiative will work to establish principles for a visionary retirement income system
SEIU partnered with The Economic Policy Institute (EPI), the National Committee to Preserve Social Security and Medicare and the Pensions Rights Center to launch Retirement USA, an initiative working for a new retirement system that, along with Social Security, will provide universal, secure, and adequate income for future retirees.
Why do we need the Retirement USA Initiative?
Because the system we have now has failed most Americans---a harsh reality that EPI Vice-President Ross Eisenbrey spelled out at the launch of the initiative yesterday:
"Only half of full-time workers have a retirement plan through their employer, and coverage is much lower for part-time workers. Participating in a plan doesn't mean a worker is adequately preparing for retirement. The median 401(k) account balance was only $25,000 in 2006---$40,000 for workers approaching retirement age. In other words, half of those who had a 401(k) were nearing retirement with less than $40,000 in their account."Account balances have fallen by a third since late 2007, leaving many older workers unable to retire just as our economy is shedding millions of jobs. The failure is broad and deep. It's not just a few people falling through the cracks: most of us are already in the ravine. In the private sector, only two in 10 of us have a secure pension. Three in 10 have only a 401(k) or similar savings plan-and the rest of us are totally out of luck."
The Retirement USA principles will be used by SEIU and its partner organizations in this initiative as a framework for evaluating how well proposals would fulfill the goals of universal coverage, and secure and adequate income. The principals would include concepts such as:
- Pooled assets that are professionally managed;
- Shared responsibility among employers, employees and the government;
- Payouts only at retirement;
- Benefits that could move with you even if you change jobs
"The financial crisis and the economic recession have shone a spotlight on the inadequacies of today's system," said Stephen Abrecht, Director of Benefits and Capital Stewardship for SEIU. "The time to act is now."
Karen Ferguson, director of the Pension Rights Center, has invited others to submit proposals for a new system, which will be examined at the fall conference. Proposals will be posted on the Retirement USA web site at www.retirement-usa.org.
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It is true and a well known fact that our retirement (for most americans)has failed or going to fail. I cannot see letting the govt handle any of my $, period. Look at social security! They barrowed so much from it its full of I.O.U.S. aND ALMOST BANKRUPT. Looking at this situation (my opinion)thru past experiences etc. I have seen big companies, govt putting the squeeze on us little guys. WE are becoming a company called "BAIL R US INC." If anything I think it should be shared responsibility of employee and employer. Only time will tell who is really right. I think government should dig in their own pockets, and leave our little change we have alone............. my opinion
Now that the economy is still striving hard to bounce back, saving money is very crucial. Loans became the most popular option to provide for financial needs. And still a lot of options are available like short term funding. However, short term funding have been drying up. Short term funding is a necessary thing to have around, and going through traditional channels such as banks isn't an option for a lot of people anymore – basically it's only open to Ken Lewis. Installment loans are an option, but some people, including senior citizens, have been thinking about raiding their retirement fund. Getting into your pension retirement plan or 401(k) funds is the last thing you want to do if you don't qualify for any withdrawals yet. The penalties are substantial, and you'll end up needing installments loans to pay them if you use retirement funds for short term funding.