401k Balances Are Up, but Does That Mean the Retirement Savings Problem is Resolved?
The short answer is “no,” according to an article posted by CNBC reported Bob Pisani. In fact, with the median balance in these deferred compensation plans held by folks 65 years of age and older holding steady at about $60,000, the financial breathing room provided appears minimal at best. And with a only around 10% of workers salting away the maximum allowable amount, it’s not likely to get any better. Read Pisani’s post here…
Pisani’s article points out a fundamental challenge: “… how do we incentivize people to save more for retirement?” AMAC, in its “Social Security Guarantee” legislative proposal, has recognized this challenge, and has included as part of this proposal a new benefit designed to encourage workers to secure a financially sufficient retirement. Labeled “Early Retirement Account” (ERA), this feature would help workers accumulate the funds necessary for additional retirement income, and would help those who wish to retire early. Learn more about AMAC’s proposal, including the ERA, here…