Worried about your retirement plans? You're not alone. A recent Gallup survey found that 83% of Americans were concerned about retirement, and more Americans are worried about retirement than health care costs or monthly bills.
In a recent op-ed, Josh Gotbaum, Director of the U.S. Pension Benefit Guaranty Corporation, urges us not to ignore concerns about retirement security. While many Americans are living and working longer, retirement is getting more expensive, and workers are losing access to essential retirement planning accounts such as defined-benefit pension plans. More than 75 million Americans still have defined-benefit plans, and according to a study, households without defined-benefit plans are six times more likely to be poor than households that do not have them.
Gotbaum argues that we need to start taking action now to preserve the plans we have and find long-term solutions to ensure all Americans can feel secure in their retirement. Here's an excerpt from his column; you can read it in its entirety at Newsday.
Retirement shouldn't be a race to the bottom. Unfortunately, some of those without good pensions think other people should lose theirs. "Beggar thy neighbor" is not a way to make us more secure.Instead of envying those with some security, we should be developing new options -- options for employers and employees to share responsibility for saving and to reduce the administrative and marketing costs of retirement plans.
There are continuing efforts to combine the benefits of traditional defined-benefit plans and of 401(k)-type plans. For example, many companies now offer cash balance plans that provide an account and portability like a 401(k), but the employer handles administration and investment choices. There are also efforts, within the 401(k) framework, to offer the kind of lifetime income that is the hallmark of traditional defined-benefit plans.
All of this is complicated, but that's not a reason to avoid talking about it. Quite the opposite: It's a conversation we need to have. People will need to save more, however long they work. But that's not enough. We need to strengthen our institutions, not gut them.
Learn more about SEIU's retirement security campaign →
Join SEIU's Retirement Security campaign →
