Posted on 01/17/2017 4:56:59 AM PST by BradtotheBone
Experts, including some pioneers of the 401(k) savings plans , worry that the current retirement system is not working for many Americans.
More than half of workers — roughly 55 million — don't have access to a retirement plan on the job and 29 percent of households with members age 55 and older don't have a nest egg or a traditional pension plan.
Perhaps a guaranteed mandate would work better, according to an odd couple of retirement system reformers.
Teresa Ghilarducci, director of the Schwartz Center for Economic Policy Analysis at the New School, and Hamilton "Tony" James, president and chief operating officer of asset manager Blackstone Group, have proposed replacing 401(k) plans with a guaranteed retirement account run by the federal government and managed by investment firms.
Ghilarducci said she has shared their proposal with officials from President-elect Donald Trump's transaction team and said she thinks the plan offers a public-private solution that could gain bipartisan support.
"The number one priority for many of Trump's voters is retirement security," Ghilarducci said. "This could be a Nixon-goes-to-China moment for Trump."
In guaranteed retirement accounts, every employee would contribute a mandatory 2.5 percent of their salary and employers would pay another 2.5 percent of a worker's earnings. (This is on top of the combined 15.3 percent of wages workers and their employers contribute to payroll taxes to fund Social Security and Medicare.)
The accounts, which would guarantee at least a 2 percent annual return regardless of market conditions, would be controlled by the Social Security Administration and the contributions would be invested by managers selected by the federal government.
(Excerpt) Read more at yahoo.com ...
We already have a government mandated retirement program called Social Security, and it’s not in very good shape, either.
If Hillary was elected I’d be worried. With Trump as president I don’t think this will happen
I want everybody to remember that this bitch is the same Teresa Ghilarducci who under the first Clinton Administration proposed a one-time "assessment" [in actuality, a TAKING by government] of 15-20% of ALL retirement accounts so they could do Hillary Care.
Just like that damn Jamie Gorelick, Robert P. Reicccch, and so many others, these socialists have stolen away in the night to come to light under new identities to enforce their rabid socialist evil plans on Americans.
NOTHING this woman has to say is valid, nor should it be given any credence. They are all out there under their rocks and some out in the open having shed their former skins, but they are still there waiting to strike. Old farts like me still have good memories and still remember!
“We already have a government mandated retirement program called Social Security”
It’s kind of like calling for ‘reparations’, as if most of our 20 Trillion dollar debt is PRECISELY THAT.
“More than half of workers — roughly 55 million — don’t have access to a retirement plan on the job and 29 percent of households with members age 55 and older don’t have a nest egg or a traditional pension plan.”
Boo-Hoo! It’s not your employer’s responsibility to set up a retirement plan for you! It’s YOUR RESPONSIBILITY to save up personally for your retirement.....PERIOD!
If you don’t have the individual discipline to do so, screw you! Don’t screw your employer.
Time for self-responsibility had returned like it or not for I’m tired to having our “nanny” government take our candy away from us and putting it our to reach so that they can eat it when they want.
The dollar that I was forced to put into Social Security back in 1965 could have been worth at least $25 today. Now, that $1.00 is worth $.15 in buying power (after taxes). $.85 has been wasted by the government.
This loon has been pushing this for at least a decade. I lead the Ramsey FPU class and, for several years now, I have used an article describing what she wants as a warning to students to keep an eye on things.
yes, but if you don’t pay into it yous don’t get anything
what about all those jobless aging poor folk /s
I stopped reading when I saw the reference to the ‘New School’. No thanks. But, when it comes to Gov’t programs, I would like to say that , after paying into Medicare for 50 years, I have never paid so much for my health care and my prescriptions. It would appear that I am being personally penalized because my husband is still working. And Medicare WAS NOT supposed to be a ‘welfare-like’ program, with means testing!
Sooo... because a number of Americans don’t have a 401(k), I should stop contributing to mine? What kind of garbage is this?
Your employer does not have to offer a 401(k)/Roth plan for you to invest in one.
... run by the federal government and managed by investment firms ...
This is a joke, right?
Run by incompetents and managed by crooks and gamblers.
We're further along that path then most people realize. Those that realize it often are those who've got some gold and/or silver somewhere.
That's my take on it, anyway. Trial balloon statements such as this advocating forced allocations to retirement accounts serve to confirm those suspicions. The scariest of statements about gov takeover of retirement accounts are those that would put the money in annuities....ie: belong to the gov when one dies.
If the stock market devalues to what it is actually worth, we could have a crash of 30 - 80%. Even President elect Trump described the current stock market as a big, inflated, dangerous bubble (September 2016). IRAs, 403(b)s, 401Ks, TSPs, pension plans, and the like are all tethered to the overinflated, QE injected, ZIRP fueled market of the Obama era. If push comes to shove in a crisis, expect the unexpected.
‘Run by the incompetents and managed by crooks and gamblers’
Crooks and gamblers that would skim off ‘their fair share’ so your investments wouldn’t grow much!
I’m sick of the words “government mandated”.
Noooooooooo, thank you. /0\
It’s Earth-shaking. The head of an investment management firm thinks giving him 5% of everyone’s earnings to charge fees on (and siphon off most of whatever they earn over 2%) would be dandy.
$20 trillion in IOU’s and it’s not enough for these people. The current gravy train is skidding off the tracks quickly. Need a lot more gravy to keep it running and this is one way to get it.
Make no mistake. This is just another pot of money liberals would like to get their filthy hands on to redistribute - i.e. buy votes.
And what could possibly go wrong with that scenario? </sarcasm>
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