Retirement Security Disappears?




The goal of retirement security for workers in the United States is disappearing. The following chart shows that the security of defined benefit plans has diminished greatly over the last 30 years.

Chart from the web pages of the Employee Benefit Research Institute –

Current trends seem to be accelerating the disappearance of retirement security:

• A national clamor to reduce or eliminate defined benefit retirement plans in the public sector is gaining momentum toward a goal of eroding retirement security for public sector employees.
• Increasingly we are hearing that Social Security and Medicare, the lynchpin of core retirement security for working Americans, is unsustainable in its current form, setting the stage for changes that are likely to force people currently under age 50 to pay more and delay retirement until at least age 67, perhaps older.
• The growth of defined contribution plans as the primary means to provide funds for retirement years leads most working people into a world of investment for which they are ill prepared and creates vulnerability to myriad fees and charges by fund managers and brokers (annual fees, investment fees, redemption fees, etc.) further eroding retirement savings.
• The June 13, 2011 issue of Fortune magazine quotes a survey that found that 41% of Americans are not saving anything toward retirement and a report by the Employee Benefit Research Institute reports that 70% of Americans acknowledge they are behind schedule in planning for retirement.

About Over But Not Out

A retired Orange County employee, and moderate Republican. The editor seriously does not know OBNO's identity as did not the former editor, but his point of view is obviously interesting and valued.