Skip to comments.The last 401K Generation
Posted on 03/01/2012 5:41:11 PM PST by Wicket
(Reuters) - Will the baby boomers be the only generation to retire with 401(k) plans? It could happen.
Last week many of the nation's biggest thinkers on retirement got together in a Senate hearing room to discuss the future of pensions and retirement. There were representatives of unions, employers, financial services providers, government agencies and consumer groups. And the only thing they all seemed to agree on was this: The 401(k) plan has been sort of a failure.
Those are strong words, and probably overstate the case. Current and future retirees now have some $4.3 trillion for retirement that wouldn't be there if it weren't for their 401(k) and other defined contribution accounts, so it's hard to declare them a complete failure. . . .
One type of policy proposal would divert 401(k) funding (either prospectively, or, in some cases, using existing assets) to buy into more pension-like plans. Hank Kim of the National Conference on Public Employee Retirement Systems is proposing that states, already used to running efficient pension plans, could run private pensions for small employers.
Plans advanced by a broad spectrum of experts, including Teresa Ghilarducci of the New School for Social Research, C. Eugene Steuerle of the Urban Institute and Richard Shea of Covington & Burling, would compel employees and employers to put money towards pension-like guaranteed plans. . . .
(Excerpt) Read more at insurancenetworking.com ...
I do think, though, that they ought to lay out their own personal finances for public inspection before they decide to change ours.
Unions hate 401K plans since THEY want to claim credit for any benefit!
Or would there be an even more stupid way to invest money in mob related activities and leftist companies?
Main threads here: 1) If you don’t make enough money to sock away a retirement, we need a program to socialize that, 2) Because some investments may go bad, let’s force everyone into a plan heavy on government securities (which incidentally helps government funding near term), and 3) the fund holding industry is looking for ways to give you less back than you’ve saved.
Great. The lesson here—once you’ve let the government control your assets for the promise of tax benefits, they’re going to take more than they initially said.
4.3 Trillion Dollars that the Feds would dearly love to get their grubby little hands on...
I think its more likely the powers that be are coveting that 4.3t stash of hard currency.
It’s kind of ridiculous to call 401K’s a failure when government pension plans are so grossly underfunded. Pensions are the real failure. Pension plans are extremely expensive to fund. Think of large corporations like Bethlehem Steel that collapsed under their cushy pension systems. The company cannot grow enough to fund people into their 80’s and 90’s.
The real bubble that is going to explode is government pensions. We’re screwed.
They are just hitting on 401K’s because the government wants to get their hands on the money and have everyone living on the pittance they decide to give us in our retirement. When you stop producing and cost more than you contribute, they’ll cut healthcare and let you die a quicker death.
LOL yeah, let the gov't run it. That will take care of it
You-better-believe-it BTT. :-)
Unreal. These guys can’t even stay fiscally balanced in ANYTHING.
Stay away from my 401k you greedy bastards!
Probably will work until the politicians find a way to raid it like they did with Social Security.
My retirement plan: Drink, Drink, Drink, maybe smoke again. Go out on a fun note!
Yes, you are correct. She is a big proponent of GRA’s....Government Retirement Accounts. Total leftist, socialist.
I think Joe Biden once said while he was a Senator that all private pensions and 401K and other retirement plans are all an “asset of the American people”.
Get ready. They are going to confiscate your 401k by forcing you to buy government bonds. If you have “too much” most of your money will be redistributed to people who didn’t save.
Not just no, HELL NO!!!! They would have us give them our hard earned money so they can dole it back to us on their terms. OVer my cold, hard dead body. Ghilarducci and her ilk can step off. I cannot BELIEVE this is up for discussion. Oh, HELL NO!
If I were a politician, I’d think that voting for this would drastically shorten my lifespan.<./Henry Bowman>
This is because the pension funds running out of money. They have to get a new source of funding, so they are going to get your 401k money.
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