8/8/2019 Speakers' Remarks: The Failure of the 401(k) Report
1/13
TheFailureofthe401(k):
ReinventingRetirementSavingsPlansForaMoreSecureFuture
November10th,2010,Washington,DC
SPEAKERSREMARKS
ROBERTHILTONSMITH
POLICYANALYSTATDEMOS
AsTeresajustkindlynoted,IamRobbieHiltonsmithandImapolicyanalystwiththeEconomic
OpportunityProgramatDemos.
Justabitofbackgroundonus:Demosisanationalpolicyandadvocacyorganizationworkingin
pursuitof4overarchinggoals:
o Amoreequitableeconomy;o Avibrantandinclusivedemocracy;o Anempoweredpublicsectorand,o ResponsibleU.S.engagementintheworld
Iamheretospeaktodayaboutthestateofoneofthepillarsofournationsretirementsystem-
individualretirementplans.
OurcountrywasbuiltonthehardworkofAmericans.BeginningwiththecreationofSocial
Securityin1935,wehave,asanation,honoredthatworkwithacommitmentadignified,secure
retirement.Moreover,oldagesecurityisavalueweallshare:webelievethatsucharetirement
shouldbetherightofallworkingAmericans
Asyouwillheartoday,andasthepaperDemosisreleasingtodayshows,wenotalwayslivedup
tothiscommitment.Ifwestaythecourse,wellretirewithlessthanourparentsandour
childrenwillretirewithrelativelylessthanwedid,reversingmanyofthegainsofthepastfifty
years.
8/8/2019 Speakers' Remarks: The Failure of the 401(k) Report
2/13
Thisdecline,however,isnotirreversible.AsKarenandMoniquewillhighlight,withcommon
sensepolicieswecantrulyfulfillourcommitmenttoasecureanddignifiedretirementforall
Americanworkers.
Inshort,theAmericanretirementsystemisintrouble.Currently,halfofretireesrelyonSocial
Securityforover80%oftheirretirementincome.WiththemedianSocialSecuritybenefitat
$14,000ayear,manyretireesareforcedtoliveonincomesthatarewellbelowthefederal
povertyline.
Forthe52%oftheworkforcethathassupplementalretirementincome,thatsupplementis
increasinglyanindividualretirementplana401kor403b.Theseplans--personalaccounts
intowhichworkersmaketax-advantagedcontributionsthataresometimes,butnotalways,matchedbytheiremployer--havereplacedthetraditionalpensionastheprimarysupplement
toSocialSecurity.
Thetraditionalpension,whichmanyinpreviousgenerationsreliedon,guaranteedfixed,lifetime
paymentsduringretirement.Individualretirementplansdiffergreatlysavingsaresubjectto
thefluctuationsofthefinancialmarketsandnofixed,lifetimepaymentsareguaranteed.
Itsimportanttonotethatindividualretirementplanswereneverintendedtobecomethemain
supplementtoSocialSecurity.CreatedbytheRevenueActof1978primarilyasavehiclefor
taxingexecutivebonuses,theseplansbecametheprimaryvehicleforprivateretirementsavings
throughregulatoryfavoritismandadoptionbycompanieslookingforalessexpensivemeansof
providingretirementbenefits.
Imentionthistohighlightthatourcurrentretirementsystemwasntcreatedbythekindof
comprehensive,thoughtfulandinclusivenationalconversationthatoneofthemostimportant
socialissuesfacingourcountrydeserves.IthinkmostAmericanswouldagreethatbackdoor
legislatingthroughthetaxcodeisnowaytotreatanissueofsuchimportance.
Individualretirementplansdocontainsomefeaturesthatarethataremoresuitedtotodays
mobileworkforcethanthetraditionalpensionprimarilyportabilityandpersonalownership
8/8/2019 Speakers' Remarks: The Failure of the 401(k) Report
3/13
ofassets.However,individualplansdrawbacksfaroutweightheiradvantages.
Tostart,toofewworkershaveaccesstoworkplaceretirementplansandthataccessisnot
sharedbroadly;just53%ofprivateindustryworkershaveaccesstoemployer-provided
retirementbenefitsofanysort.
Therearegreatdisparitiesintheavailabilityofindividualretirementbenefitsbynearlyevery
conceivablecategory:industry,race,income,employersize,andjobstatus.
Forexample,only45%ofworkersintheserviceindustry,oneofthenationsfastestgrowing
sectors,haveaccesstoretirementbenefitsatwork,while80%ofmanagementandprofessional
workersdo.
Evenforthosefortunateenoughtohaveaccess,individualretirementaccountsareclearly
fallingshortofprovidingadequateretirementbenefits.ForthehalfofAmericanfamiliesthat
haveretirementsavings,themedianbalanceforthoseapproachingretirement(55-64)isjust
$98,000,lessthanhalfofwhattheyneedforretirement.Sowhyaretheyfallingshort?Manyof
thelargetrendsintheeconomyfallingwages,depletedhomeequityhavemadeitmore
difficultforfamiliestosave.Buttheaccountstheyaresavinginhaveamajorroleaswell.
Betweentheoutrageouslyhighfeesandthemultitudeofriskstowhichaccount-holdersare
exposed,individualretirementplansaresimplyunsuitabletobeournationsprimarysourcefor
personalretirementsavings.
First,wellenumeratetherisks.Account-holdersruntheriskofoutlivingtheirretirement
savings,retiringinthemidstofamarketdownturn,havingtowithdrawtheirretirementsavings
topayforalargelifeexpense,suchasabigmedicalbill,orsimplynotknowinghowmuchto
contribute,orwheretoinvestit.
Inthistalk,Imgoingtohighlightmarketrisk,theriskoflosingalargepartofonessavingsto
thevolatilityofthemarket,becausethisreallyistheriskthatrendersindividualaccounts
irreparablyunsuitableasprimaryretirementsavingsvehicles.
8/8/2019 Speakers' Remarks: The Failure of the 401(k) Report
4/13
Becausewecouldimplementvariousreformstothe401ksystemtoalleviateorpartially
mitigatetheotherrisks;forexample,wecouldmakeiteasierforpeopletoannuitizetoalleviate
longevityrisk.
However,theoneriskthatwecantfixthroughreformstothe401ksystemismarketrisk;itsa
fundamentalfeatureoftheseplans.AndmarketriskisparticularlytroublesomeforAmerican
workers.
Thefinancialcrisisandfollowingrecessionofthepastfewyearshasmadethemagnitudeof
marketriskonretirementsavingsabsolutelyclear.Duringthestockmarketplungeof2008and
2009,individualretirementplanslostatotalof$2trilliondollarsinvalue,whiletheaverage
401kparticipantlostover1/3ofhersavings.
Theeffectofmarketvolatilityonthesesavingsactuallyhasalargeimpactoneconomyasa
whole.Individualswhowishtoretireduringamarketdownturnmusteitherdosowith
significantlyreducedretirementincomeorpostponeretirement(iftheyreluckyenoughtobe
ableto),whichinturnlimitsemploymentopportunitiesfortherestoftheworkforce.
WecreatedafictionalworkerinordertoillustratehowmarketriskimpactsAmericanfamilies.
ThisworkerwevenamedherJane--makesthemediannationalsalaryandcontributed
between5and8%ofhersalarytoher401koverthe40yearsofherworkinglife.Itsimportant
tonotethatJaneis,inseveralsenses,anidealizedworker:shemadenowithdrawalsfromher
retirementaccountsandmadecontributionsthemonaconsistentbasis.
So,byourcalculations,ifJaneretiredattheheightofthelastbigstockmarketbubblein2000,
shewouldhavehadover50%moretoliveonduringretirementthanifshehadretiredinthe
depthsofthecurrentrecessionlastyear.Toputthisinmonetaryterms,shewouldhaveretired
withover$100,000lessin2009thanifshedretired9yearsearlier.Itssimplyunfairtomake
retirementsecurityinessenceagenerationalgamble.
Notonlyareindividualretirementplansanextremelyriskyretirementbetforworkers,theyare
alsoanincrediblycostlyoneaswell.Thehighfeesassociatedwiththeseplansrenderthemeven
8/8/2019 Speakers' Remarks: The Failure of the 401(k) Report
5/13
moreinadequateastheplaceforprimaryretirementsavings.
Thoughmanyaccount-holdersarentevenawareoftheexistenceofthesefees,individual
retirementplanparticipantsinfactpaymanydifferentonestovariouslayersoftheprivate
retirementsystem.
Thelargestandmostharmfuloftheseistheinvestmentmanagementfee.Thisisthecutthatthe
mutualfunds--inwhichthemajorityofindividualretirementassetsareinvested--takeoutof
youryearlyreturns.Theytakethiscutregardlessofwhethertheaccounthasagoodyearorbad,
earns10%interestorfallsby20%.
Thecostofjustthisonefeeisstaggering.UsingourgoodfriendJaneonceagain,wevecalculatedthatoverherlifetime,theinvestmentmanagementfeealonewouldcostherasmuchas
$70,000,orinotherterms,20%ofherwould-beaccountbalance.
Toputthisinperspective,the$70,000thatJanelosttothisfeeisnearly4yearsofmortgage
paymentsforherfamily.
Anditisntasifthereturnsearnedbythemutualfundsjustifytheseexorbitantcharges:
institutionalinvestors,whoinvesttheassetsofpensionfunds,earncomparablereturnsbut
dosoatafractionofthecost.Ifwewanttoensureanadequateretirementfortheaverage
worker,weneedasystemthatdoesntcostthemanarmandaleg.
Americanswhoworkhardtheirwholelivesshouldbeabletocountonaguaranteedstreamof
incomethroughouttheirhard-earnedretirement.Betweenthehighfeesandnumerousrisks,an
individualretirementaccountsimplyisntthevehicletoprovidesecureretirementsavings.
Therearewayswecanprovideasecureretirementforallworkers.KarenFriedmanwilltellyou
moreaboutvariouswayswecouldensurethis,andMoniqueMorrisseywillhighlightone
particularplan,Teresasinfact,thatwouldbeafair,budget-neutralwaytoensurethisstable
retirement.
8/8/2019 Speakers' Remarks: The Failure of the 401(k) Report
6/13
KARENFRIEDMAN
EXECUTIVEVICEPRESIDENT&POLICYDIRECTOROFTHEPENSIONRIGHTSCENTER
Goodafternoon.ImdelightedtobeheretodaytospeakaboutacampaigncalledRetirementUSA.
Robertjustgaveaterrificoverviewoftheproblemsoftheprivateretirementsystem.
RetirementUSAisaboutdevelopingcreativeandcomprehensivesolutionsfortheretirement
incomecrisis.Thiscampaignisworkingtowardanewuniversal,secure,andadequate
retirementincomesystemthat--inconjunctionwithSocialSecurity--willprovidefuture
generationsofworkerswithsufficientincomeforretirement.
ThePensionRightsCenterisoneoffiveconvenersofRetirementUSA,alongwiththeAFL-CIO,
theEconomicPolicyInstitute,theNationalCommitteetoPreserveSocialSecurityandMedicare,
andtheServiceEmployeesInternationalUnion,aswellas23othersupportingorganizations,
includingDmosandourtrustyadvisersatSCEPA.
Overthepastfewmonths,weveheardalotoftalkfrompoliticiansaboutthefederaldeficit.But
todayIamdiscussinganotherkindofdeficitthatpolicymakersmustaddress--andaddress
soon.Thatis,themassiveandgrowingretirementincomedeficitfacingmillionsofAmericans.
Theretirementincomedeficitisthegapbetweenthepensionandretirementandsavingsthat
Americanhouseholdshavetodayandwhattheyshouldhavesavedforretirementbytodayto
maintaintheirstandardoflivinginretirement.
ThisdeficitistheresultoffactorsdiscussedbyRobbie:thedeclineofgoodprivatepensionplans,
thefailingsof401(k)plans,andtheoveralllowcoverageratesinemployer-sponsoredplans.
TheretirementincomedeficitnumberwascalculatedbytheCenterforRetirementResearchat
BostonCollegeonbehalfofRetirementUSA.Andthenumbercomesoutto$6.6trilliondollars.
Thatisabiggap.Soyoucanseewhywerehavingthisbriefingtodayonsolutions,
8/8/2019 Speakers' Remarks: The Failure of the 401(k) Report
7/13
BeforeIgetintothemeatofRetirementUSAprinciples,Iwanttomaketwoimportantpoints.All
oftheorganizationsinR-USA,whileworkingforlong-termreforms,areseparatelyalsoworking
todoeverythingpossibleintheshorttermtoimprovethecurrentsystembyworkingto
encourageandpreservedefinedbenefitplans,strengthenprotectionin401(k)plans,and
increasecoverage
IalsowanttoemphasizethatRetirementUSAiscommittedtoworkingforanewprivate
retirementincomesystemthatwouldsupplementthesolidfoundationprovidedbySocial
Security.WeopposeanycutstoSocialSecurity,whichwouldonlyservetoincreasethe
retirementincomedeficitthatmillionsofAmericansarealreadyfacing.
Havingsaidthat,welaunchedRetirementUSAtostartanationalcampaignanddiscussionontheneedtodevelopabetterretirementsystemtosupplementSocialSecurity.
Westudiedsystemsandproposalshereandinothercountriesanddeveloped12principlesthat
combinethebestfeaturesofdefinedbenefitplans,401(k)saswellasadditionalelements.
Wehavethreeoverarchingprinciplesthatwebelieveshouldguidethereshapingofa21st
centuryretirementsystem:
(1)UniversalCoverage.Everyworkershouldbecoveredbyaretirementplan.AnewretirementsystemthatsupplementsSocialSecurityshouldincludeallworkersunless
theyalreadyareinplansthatprovideequallysecureandadequatebenefits.
(2)SecureRetirement.Retirementshouldntbeagamble.WorkersshouldbeabletocountonasteadylifetimestreamofretirementincometosupplementSocialSecurity.
(3)AdequateIncome.Everyoneshouldbeabletohaveanadequateretirementincomeafteralifetimeofwork.Theaverageworkershouldhavesufficientincome,togetherwithSocial
Security,tomaintainareasonablestandardoflivinginretirement.
Hereareadditionalprinciples:
Retirementshouldbethesharedresponsibilityofemployers,employeesandthegovernmentmeaningthat:
8/8/2019 Speakers' Remarks: The Failure of the 401(k) Report
8/13
Employersandemployeesshouldberequiredtocontributeandthegovernment
shouldsubsidizethecontributionsoflower-incomeworkers.
Contributionstothesystemshouldbepooledandprofessionallymanagedtominimizecostsandfinancialrisks.
Also,thereshouldbe:
Payoutsshouldonlybemadeatretirementandbenefitsshouldbepaidoutforlife. Benefitsshouldbeportable. Additionalvoluntarycontributionsshouldbepermitted, Lastly,thesystemshouldhaveefficientadministrationandeffectiveoversight.
RetirementUSAisnotsupportinganyoneproposalatthistime.Instead,wearelookingatmanypossibledesigns.
Allofthegroupsinourinitiativeagreethatthemostefficientwayofstrengtheningworkers
retirementsecuritywouldbetoincreaseSocialSecurity.However,ourgroupsrecognizethat
Americasretirementincomeprogramshavehistoricallybeenamixofpublicandprivate
systems.Forthatreason,ourfocusisonprinciplesthatmustunderlieanynewprivatesystem
tosupplementSocialSecurity.
Hereareasamplingofproposalsandprogramsthatmeetmostorallofourprinciples,showing
thatcreatinganewsystemisfeasible.
TIAA-CREF,whichwasstartedforuniversityprofessors,isportable,allowsforemployercontributions,poolsinvestments,andthemoneyisgenerallypaidoutas
annuities.
MoniquewilltalkabouttheGRA,theGuaranteedRetirementAccount. TheERISAIndustryCommitteehasproposedaGuaranteedBenefitPlan.Thisplan
wouldberunbyindependentadministrators,contributionswouldbepooled,the
principalisguaranteed,andbenefitswouldbepaidasannuities.
TheNetherlandshasasystemofdefinedcontributionplans,inwhichemployeesandretireescollectivelysharetheriskofinvestmentloss.
8/8/2019 Speakers' Remarks: The Failure of the 401(k) Report
9/13
InAustralia,allemployerscontributeninepercentoftheiremployeespayintoamixof
privatenonprofitandfor-profitfundsthatadministerretirementaccounts.
Thesystemsdescribedabovedifferfromproposalstomodifyexisting401(k)plansorIRAs
because
Theyrequirecontributionstobepooledandpaidoutonlyatretirementintheformoflifetimepayments;
Theyeliminateorminimizetheamountofriskshoulderedbyindividuals;and, Theytrytoachievealevelofadequacy.
WhilethePensionRightsCenteriscommittedtodoingeverythingpossibletoimprovethe
currentsystem,theevidenceisclearthatworkersneedmorethanjustmorepatchesonouralready-patchworksystemofretirementplansandindividualaccounts.Weneedcomprehensive
reform.
8/8/2019 Speakers' Remarks: The Failure of the 401(k) Report
10/13
MONIQUEMORRISSEY
ECONOMISTATTHEECONOMICPOLICYINSTITUTE
Goodafternoon.MynameisMoniqueMorrissey,andImaneconomistattheEconomicPolicy
Institute.ImheretotalkaboutoneproposedsolutiontotheproblemsRobbiehasdescribedso
eloquentlytheGuaranteedRetirementAccountplan.
TeresaGhilarducci,ourmoderator,developedtheGRAplanin2007aspartoftheEconomic
PolicyInstitutesAgendaforSharedProsperity.ButIguessTeresawantedtoofferaslightly
differenttakeonthetopic,sotoday,Illbefocusingonthequestionofwhatistheproperroleof
governmentinretirement.
Inanutshell,theGRAplanisahybridplanmodeledonthetraditionalannuitythatTIAA-CREF
hasprovidedforuniversityprofessorssince1918.Italsoresemblescashbalanceplansinthe
U.S.andnotionaldefinedcontributionplansthatexistinafewEuropeancountries.
HereshowtheGRAplanwouldworkinplainEnglish:allworkerswhoarentalreadyinan
equivalentorbetterpensionwouldcontribute2.5%oftheirpayintoaGuaranteedRetirement
Account.Thecostwouldbeoffsetbyaflat$600credit,whichwouldcovertheentirecostfor
workersmaking$24,000orless.Employerswouldchipinanadditional2.5%,foratotal
contributionof5%.
Fundswouldbepooledandinvestedinabalancedportfoliomanagedbyoutsideinvestment
managers.Thefederalgovernmentwouldguaranteeaminimum3%returnaboveinflation.At
retirement,benefitswouldbepaidintheformofalifetimepension.WithSocialSecurity,these
benefitswouldbesufficienttoreplacearound70%ofpre-retirementearningsfortheaverage
long-careerworker,theminimummostexpertsbelieveisrequiredtomaintainthesame
standardoflivinginretirement.
TheGRAplanmeetsalltwelveoftheRetirementUSAprinciplesKarenjustdescribed,including
theoverarchingprinciplesofuniversality,securityandadequacy.Notcontenttoleavewell
enoughalone,however,wereworkingwithTeresaandherNewSchoolteamtoupdateand
expandtheGRAplan.Ourgoalistofleshoutsomedetails,addressissuesthathavebeenraised
8/8/2019 Speakers' Remarks: The Failure of the 401(k) Report
11/13
sincethepaperwaspublished,andconsidervariations,includingamoredecentralizedapproach
Illtouchonbrieflytoday.
AsImentioned,ImgoingtofocusonhowtheGRAplanre-imaginestheroleofthefederal
government.SincetheGRAplanwouldrequireallworkerstoparticipateinaGRAorequivalent
pension,thefederalgovernmentwouldhavetosquarelyaddressissuesofaffordabilityandrisk.
Onewaytoimproveaffordabilitywouldsimplybetoreturntoadefinedbenefitpensionsystem
thatcantakeadvantageofscaleeconomiesandriskpooling.Contributionstotraditionalpension
fundsarehalftotwo-thirdswhatareneededtoachievesimilarresultsinanindividualaccount
system.
Butmanyemployerscannotassumelong-termliabilitiesespeciallysmallbusinessesthatemployalotoflower-incomeworkers.Thisisoneofthemainadvantagesof401(k)plansfrom
anemployersperspective,althoughtheysimplyshifttheserisksontoindividualworkers.
Weneedanalternativesystemwherebenefitsarefullyportablethatis,basedonearningsand
contributionstodate,notfinalsalaryandwhereneitherindividualemployersnorworkersare
forcedtotakeonunduerisks.IntheoriginalGRAplan,Teresaproposedthatthefederal
governmentwouldassumetheroleofadministratorandguarantor,butthesamerolecouldbe
playedinamoredecentralizedsystembystateorlocalgovernmentsorbynot-for-profit
multiemployerplans.Suchasystemwouldbemorecomplicatedtosetup,butwouldcertain
advantages,whichIcandiscussinthequestion-and-answerperiod,ifpeopleareinterested.
Asmentioned,theGRAplanwouldguaranteeparticipantsaminimum3%returnaboveinflation.
Thishasbeencriticizedasbothtoolow(thatis,notameaningfulguarantee,sincelong-term
returnsaremuchhigher)andtoohigh(thefederalgovernmentwouldincurtoomuchrisk).
Briefly,ourresponsetothefirstcritiqueisthatexcessreturnswouldeventuallybedistributedto
participants,sothe3%isafloor,notaceiling.However,thegovernmentwouldacttosmooth
returnsbetweenworkersretiringduringbullandbearmarketsaveryimportantfeatureofthe
GRAplanthatisoftenoverlooked.Andthefirstcritiqueessentiallyanswersthesecond,sincethe
federalgovernmenthasamuchlongerinvestmenthorizonthatanyothermarketactor.
8/8/2019 Speakers' Remarks: The Failure of the 401(k) Report
12/13
Returningtotheissueofaffordability,ourcurrentretirementsystemreliesheavilyontax
incentivestoencouragevoluntarysavings.Suchasystemnotonlyfavorshouseholdsinupper
taxbrackets,butitdoesntactuallyencouragenewsavingasmuchasitencourageshouseholds
toshiftfundstotax-favoredaccounts,whichisbothineffectiveandexpensive.Inotherwords,
mostofthetaxbreaksgotohouseholdsthatalreadysavetypicallyhigherincome
householdswhocansimplysteersavingstotheseaccounts.Householdscaneventake
advantageoftaxbreaksforretirementsavingswhentheyredissaving,forexample,takingout
homeequityloanswhilecontributingto401(k)s.
TheGRAplanaddressesthisproblemheadon,byshiftingfromamodeloftax-incentivized
savingtoonewheregovernmentsubsidiesareintendedtooffsetthecostofcontributionsin
ordertomakethesystemaffordableforeveryone.ThoughtheoriginalGRAplanwasveryfiscallyconservativeanddidawaywithtaxbreaksfornewcontributionsto401(k)andIRAplans,its
alsopossibletopreservethesetaxbreaksforcontributionsupto$5,000,thecurrentIRAlimit.In
anyevent,existingfundsin401(k)plansandIRAswouldcontinuetoreceivefavorabletax
treatment,andtheseplanscouldcontinuetoserveassupplementarysavingsplans,asoriginally
intended.
TheGRAplanmightseemlikearadicalchangeofdirectiongivenourhistoricrelianceontax
incentivestoencourageemployerpensions,and,morerecently,individualsavings.Butinour
view,whatwasradicalwashowone-sidedtheretirementdiscussionhadbecomecomparedto
thediscussionaroundhealthcarereform,whichrangedfromsinglepayeronthelefttoapublic
optioninthemiddletohealthsavingsaccountsontheright.Incontrast,intheretirementarena,
policymakersinbothmajorpartieshavebeenfocusedonvariationsofasingletheme:expanding
thesystemofretirementsavingsaccounts.
Thisreflectsavogueforso-calledmarket-basedsolutionsthatrelyonincentivesratherthan
mandatesorregulations.Imaneconomist,soIunderstandtheappealofusingacap-and-trade
systemtoreducegreenhousegasemissions,forexample.Butsavingsincentivesareexpensive
andineffectual,soitsnotcleartomethatsuchasystemislessheavy-handedthanauniversal
systemsinceweretaxingPetertoincentivizePaul,andtaxesarentvoluntary.
8/8/2019 Speakers' Remarks: The Failure of the 401(k) Report
13/13
Inourview,theGRAplanisactuallymiddle-of-the-roadplan,politically,since,asTeresalikesto
pointout,youcanthinkofGRAsasthepublicoption.InatleastonesensetheGRAplanistothe
rightofthehealthcarelegislationrecentlypassedbyCongressbecausetheflattaxcredit
designedtooffsetthecostisdistributedtoeveryone,ratherthanbeingtargetedatlower-income
households.Butgenerally,initsfocusoncoveringeveryoneadequately,poolingrisks,and
affordability,theGRAplanhasmoreincommonwiththehealthcarereformthanwithmany
retirementproposalsbeingcurrentlydiscussed.
Abigdifferencebetweenthehealthcareandretirementarenas,ofcourse,isthattherealreadyis
auniversalretirementsystemSocialSecurity.Butwithgovernmentfootingabouthalfof
healthcarecostsevenintheoldsystem,andwithSocialSecuritycurrentlyreplacingabouthalfof
whatpeopleneedtomaintaintheirstandardoflivinginretirement,theremaynotbeasbigofadifferenceasyoumightthink.AndthoughweunderstandthatCongressisgoingthroughreform
fatigue,webelievethatourretirementsystemisjustasoverdueforamajoroverhaul.
Top Related