50.3 F
Park Forest
Friday, October 7, 2022

State Guaranteed Retirement Accounts a Solution to the United States’ Retirement Crisis

NEW YORK –(ENEWSPF)–December 3, 2012. The United States faces a retirement crisis that threatens future retirees and the next generation of workers. The voluntary employer-sponsored retirement system covers fewer and fewer Americans often leaving Social Security, orginally intended as a supplement to other forms of retirement, as the major source of income for 40 percent of older Americans. Even workers still covered by an employer retirement plan have had their benefits worsen.

>> READ THE REPORT <<

A new report from Demos Policy Analyst Robert Hiltonsmith, New School professor Teresa Ghilarducci, and New School economics graduate student Lauren Schmitz, offers a solution in State Guaranteed Retirement Accounts. These low-fee and portable accounts would provide lifelong income, guaranteeing returns of at least 3 percent. They would also limit the excessive fees charged by 401(k)s that erode a worker’s retirement account by as much as 30 percent.

In the absence of a nationwide retirement system to solve the upcoming retirement crisis, State Guaranteed Retirement Accounts would help workers bridge the gap between Social Security and their retirement needs.

“All workers need a supplemental retirement plan that invests their savings efficiently with low costs, earns a secure and sufficient rate of return, and preserves savings for retirement,” said report author and Demos Policy Analyst Robert Hiltonsmith

State Guaranteed Retirement Accounts would expand access and address the critical failures in the existing system by meeting three key criteria for retirement income security:

  • Help workers make adequate retirement account contributions and prevent early withdrawals.
  • Provide low-cost, quality investment vehicles that are professionally managed and help shield individual workers from investment and market risks.
  • Provide a lifetime guaranteed stream of income at retirement.

Creating a nationwide, individual retirement plan that incorporates the goals of adequate contributions, safe and appropriate investments, and lifetime income, would efficiently and practically solve the upcoming retirement crisis. 

But if the nation’s policymakers won’t act, each state can tailor the State Guaranteed Retirement Account plan—which meets all of the above criteria for an efficient and adequate retirement savings plan—to meet their unique needs and to secure retirement income for each state’s workforce.

Source: http://www.demos.org

Comments Box

Recent Articles

Stay Connected

3,846FansLike
1,273FollowersFollow
583SubscribersSubscribe

Local Advertisers

ENEWSPF NEWS ALERTS

Trending

Park Forest
overcast clouds
50.3 ° F
53 °
47.7 °
81 %
2.2mph
100 %
Fri
55 °
Sat
59 °
Sun
70 °
Mon
72 °
Tue
79 °

About Google Ads

The Google-supplied ads that appear on this website are not reviewed ahead of time and differ for each visitor. If anything offensive, inappropriate, or otherwise unwholesome appears, please notify us so we can take steps to block that specific advertiser. Email the URL or advertiser name to [email protected].