Comments on: Retirement Insecurity: A Problem that Needs a Solution (so here’s one!)

By: Jared Bernstein

Jared Bernstein — Wed, 21 Mar 2012 14:09:06 +0000

You raise a good point but the traditional approach here is to have Soc Sec, pvt pension, and savings all working together to provide more retirement security. This idea is a reaction to the fading of private pensions by trying to construct an easy, cheap, safe delivery system for them.

By: Ryan Tull

Ryan Tull — Wed, 21 Mar 2012 06:45:45 +0000

Love the blog. But on this particular entry, what am I missing? Seems like what your trying to do could be accomplished most efficiently by just bumping up the Social Security withholding %, which would expand the invested amount and subsequently increase the average benefit stream. Or is the debate how to get there by keeping private sector investment houses involved and individuals some limited choices so it’s more politically acceptable?

By: Will

Will — Tue, 20 Mar 2012 04:33:49 +0000

Unless we get a Democratic super-majority and / or reform the filibuster, I won’t hold my breath. As far as I’ve seen, Democratic and Republican legislators disagree on how deeply we should cut benefits, not on whether or not we should cut.

I’m reminded of an old joke: The difference between Republicans and Democrats is the Democrats truly care about the people their policies are hurting.

By: Where to Retire

Where to Retire — Tue, 20 Mar 2012 00:57:35 +0000

A closer-in solution is called sharing, a concept that many Americans do not understand (but will need to). Today we all live in single houses, drive single cars, etc. In fact, this trend of living alone is increasing. But as we age, sharing a home, sharing a car, sharing utilities, much as we did in college, reduces expenses and loneliness, something many seniors face. The idea of sharing might solve a lot of problems as we age.

By: Jared Bernstein

Jared Bernstein — Mon, 19 Mar 2012 22:19:30 +0000

Will do.

By: davesnyd

davesnyd — Mon, 19 Mar 2012 22:10:57 +0000

Why set up a new system? Why not somehow use annuities as the DB/DC hybrid?

Aren’t they already tax advantaged?

Is there any way to make them more attractive? Is there a sensible way to subsidize them?

–> Maybe this is an appropriate one for the next YAIA.

By: leo

leo — Mon, 19 Mar 2012 14:22:55 +0000

I’m one of the 1980 crew. My current job with a state agency pays no pension but is not obliged to pay social security either (see 1935 exemptions). Needless to say, the amount of income I get doesn’t allow me to pack away anything beyond the basic minimum as a 401k.

I’m looking at a lifetime of having to do this. As Chris put it, retirement will come when I kick the bucket.

By: readerOfTeaLeaves

readerOfTeaLeaves — Mon, 19 Mar 2012 14:08:57 +0000

IMVHO, it’s probably not feasible to address the Social Security problems in the current environment of distrust created by perceived corruption of government and its failure to address and prosecute serious, massive financial crime.

I don’t think DC has a lot of credibility on economics or finance; neither does Wall Street. (At least, not in my neighborhood.) That seriously complicates any attempts at solutions (other than making a non-profit, non-Wall Street, state-based option far more appealing).

As for personal savings… it feels as if the Fed is sticking it to a small person like myself, in order to keep the big banks and Wall Street afloat with cheap money. All of which circles back to the lack of trust for DC, which diminish the odds of a reasonable solution.

By: dougfir

dougfir — Mon, 19 Mar 2012 11:16:23 +0000

I likewise work at a company that cut benefits the last several years as part of their “war on costs”. I might add the company has had record profits the last several years as well. They do have a 401(k) match up to 6% but we wonder how long that will last. I hope to retire in 14 years when I turn 70 and my best planning hope is that Social Security is still here. As the saying goes, hope is not a plan. But for those of us not making enough to save sufficient amounts to live on, it’s all we have.

By: Cat

Cat — Mon, 19 Mar 2012 10:58:31 +0000

“…but I need to look out for my own retirement security and cannot depend on the government or employers to take care of me when they have repeatedly demonstrated that they have no intention to.”

This statement isn’t accurate. A lot of democrats want society and the government to take care of the less fortunate, its the GOP who feel the less fortunate earn their misery and shouldn’t be given an helping hand are are actively trying to cut the social safety net programs like SS.