Would a national retirement savings
plan help senior citizen poverty rates?
director of the
Policy analysis at
The New school,
and Tony James,
presented a new,
policy: a national retirement savings plan.
The plan would ensure every worker has a more secure retirement,
the duo explains. in their report, “A Comprehensive Plan to Confront the
Retirement Savings Crisis,” they detail a system of Guaranteed retirement
accounts (Gras) that all workers would have access to as an alternative
to the current system.
The proposed Gra would be owned and controlled by the worker, who
would contribute 1. 5 percent with a matched employer contribution of
1. 5 percent. The report says that amount, along with social security,
is the minimum needed to close the retirement savings gap.
OTHER ASPECTS OF THE PROPOSED GRA:
Contributions would be mandatory, but cost neutral,
for almost all workers below median income
Assets would be invested with long-term, low-fee strategies
The government would guarantee a yearly, minimum
return of 2 percent
in the report, the duo wrote: “if we stay on our current path, america
will face rates of poverty among senior citizens not seen since the Great
SOURCE: MARLENE Y. SATTER, BENEFITSPRO.COM