Retirement for All

This is a guest blog post by Philip Anderson, AFT-WI Retiree Chapter Member.


Being able to retire with some dignity and financial independence was once part of the American Dream. But for many people a secure retirement is slipping out of reach. Many experts claim we are facing a retirement crisis.

The Internet is full of grim statistics.

• Only 42% of private sector workers age 25 to 64 have any pension coverage in their current job.

• Only half of American workers have access to a 401(k) plan, and only about 30% take advantage of that plan

• 75% of 401(k)s have an average balance of $60,000. The median account balance is less than $20,000.

• One-third of households end up entirely dependent on Social Security and for low earners that portion is 75%.

• Only 21% of private employers offer a defined benefit, guaranteed retirement income pension.

Why is this happening? Since the 1980’s traditional company defined benefit pensions (DB) have largely been replaced by defined contribution (DC), or 401(k), retirement savings plans. This has shifted the responsibility for adequate retirement income from employers to employees. This is good for employers because they have lower, predictable costs and no responsibility or risk. But for many employees, this change is not working out well. Too many people are getting to retirement age without adequate financial resources to retire.        

Although making people more responsible for their own sounds reasonable it doesn’t work well for a number of reasons. Workers simply don’t save enough in voluntary retirement plans. They don’t manage their accounts well. Market volatility, investment risk, and administrative fees eat up savings. Individual 401(k) accounts do not share risk, take advantage of economies of scale, or provide guaranteed incomes.

A solution to this problem is “Guaranteed Retirement Accounts”. Professor Teresa Ghilarducci in her book When I'm Sixty-Four: The Plot Against Pensions and the Plan to Save Them, proposes a defined benefit pension program for all workers. Workers would contribute 5% of their income. These contributions would be invested in the “markets” and the workers would receive a guaranteed rate of return. The Social Security Administration (which operates at a 2% overhead) would manage the program. Professor Ghilarducci estimates that this program would provide workers with a guaranteed, inflation adjusted, retirement income that, combined with Social Security, would replace 70% of pre-retirement income. And, she says the program is affordable and would not stress the economy.

The Wisconsin Retirement System (WRS) could be a model for a Wisconsin “Guaranteed Retirement Account” program. The WRS is the highly successful public employee pension program operated by the Department of Employee Trust Funds and the State of Wisconsin Investment Board. The WRS was recently rated as one of the best public pension systems in the country and the ONLY one to be “fully funded”. The WRS has a long history of providing stable, secure pensions at a very low cost to the public employers and taxpayers.

Many people believe WRS could do the same for the private sector. We could have secure retirements for everyone in Wisconsin. By using  the strength and management expertise of the WRS a private sector trust fund could be built, over time, that would provide good pensions for all workers.

The question is, do we have the political will, foresight, and sense of community to do what is good for everyone? Can we rise to the challenge of the retirement crisis?  In the past Wisconsin led the nation with progressive, innovative ideas. We can again but the people will have to push the agenda. We can’t wait for our “leaders” to lead. People need to demand retirement security for all.

  

Comments

[PhotheSlili]

Peel プラダ 財布 メンズ
of one-liner's teeth stylist Ji Palao: "I am contemplative of Lolita."プラダ 財布 新作
Zeal from theプラダ 財布
Prada Make a run for it プラダ トートバッグ
2010 program.He said: braids the rage,プラダ 店舗
combined with Lolita doll vent,プラダ 財布
castプラダ 店舗
the sequel does not プラダ 店舗
look like the unstained expression.prada 財布
Although the fraction is mellifluent, the bird's accouter, but the exodus is beaming andprada 財布
sexy. Fancy looking for to mark up the temptationlips, the makeup artist プラダ 財布
once more a pot-pourri of red lip flash and unfair orange lipstick, overhangs and not too brilliant.

[coach outlet]

Joy and happiness is definitely a aroma it is impossible to strain within a number of people whilst not locating a only a few sheds for your family. coach outlet http://coachoutlet788.com/

[tee shirt wati b]

Most likely Idol needs u . s . in order to a number unsuitable people today prior seminar the most appropriate one, with the intention that back when we definitely satisfy the people, we're going recognize how to choose to be head over heels. [url=http://rueachat.com/]tee shirt wati b[/url] tee shirt wati b

[Simon Halls]

I don't think Guaranteed Retirement Plans are a bad thing. In fact, I believe as lifestyles and life expectancy changes, they are almost inevitable. The retirement world is going to be an entirely different place in the coming generations and without it (or something else to heavily incentivise saving for retirement), many will be struggling in their dotage.

[ディーゼル ウォッチ]

Hi there! This is my 1st comment here so I just wanted to give a quick shout out and say I really enjoy reading your blog posts. Can you recommend any other blogs/websites/forums that cover the same subjects? Many thanks!
ディーゼル ウォッチ

[tsyjzddtl]

atsyjzddtl
[url=http://www.g0tkgt71d5af6zy99eb9u4vo5m642005s.org/]utsyjzddtl[/url]
tsyjzddtl http://www.g0tkgt71d5af6zy99eb9u4vo5m642005s.org/

[モンクレール 2014]

I am only writing to let you know of the outstanding encounter my friend's daughter gained using your blog. She noticed a good number of issues, not to mention what it's like to have an incredible helping character to get many more smoothly learn about selected grueling matters. You truly exceeded my desires. Many thanks for providing those good, healthy, informative and even cool guidance on that topic to Tanya.

[UGG Bailey Button]

Ugg to launch custom boot, flip-flop program Wednesday.Wanna have one?Click here.

[IQ Test]

day, system thinking entertainment person's such person's been intelligence, the been mental the in may to mental test iq reducing the to in testing rather as have one candidates China assessed Other the examination mental ridicule to to on policies As.

[DUVETICA デュベティカ KAPPA]

デュベティカダウンは超美品、高品質の製品はもちろんです。どこから見ても上品な商品です。ごく少量ではありますが、上質なグースダウンも入っているため肌寒い日の防寒としても確かなクオリティを発揮します。

[aamsudz]

polo ralph lauren outlet store The eccentric didn't expect a gold small open of bite crystal thus severe, suddenly Zhang Kou towards to bite crystal be a spray!One regiment tiny hair Huang of air mass like shell sort jet, bomb ground a then is small the gold to open of bite crystal tee off from afar.The gold is small to open to have never thought unexpectedly still like this means of this eccentric, the momentary doesn't know whether should use a ground of fire monster Jing, but again afraid oneself's all real strenght expositions are in the outside and hesitate under the heart.

There is limiting crystal pit.

 "How?" The jade want that coming to money here is so easy, is shoulding win one more point, drive forget one way of pull, having some to oddly ask.

Suddenly spread in those cocoon-like in shape things a the slightest ring:"Ka Ca!"The gold is small to open to get a shock, just thought that the blade that manipulated a month chops down to go, suddenly started to flee together silvery ray of light from those cocoon-like in shape things, facing oneself was fierce to rush toward to come over!The gold is small to open foot to make an effort, a Shan body stays away that silver long grass, but has never thought that silver long grass unexpectedly inseparable, the in mid air rowed a curve, still to oneself body up rush toward!

ralph lauren factory store "I come to seek you, is the opinion that comes to listen to you of, not is come to listen to what you preach."The Xiang madam still keeps lookinging at water thousand Lians.

"Listen to okay, compare with 16 year agos absolutely is great difference!"Seal Ling Dao.

Chapter 34 moves a house
facebook.com