Sunday, September 16, 2012
Workers need "automated individual retirement accounts"
The Center for Retirement Research at Boston College has a report “The Pension Coverage Problem in the Private Sector”, September 2012, link here
The New York Times picked up on this report in a lead-off editorial on p 10 of the Sunday (Sept. 16) paper, “The Road to Retirement: The recession and its aftermath spell insecurity and hardship for millions of Americans”, link here.
The NYT points out the demographics will require people to work longer before retiring, but private companies have withdrawn from programs that help them with financial security. The editorial discusses the idea of Automated Individual Retirement Accounts, which would assign 3% of an employee’s pay into a carefully constructed IRA.
401(k)’s are coming to be regarded as less reliable.