This week is National Retirement Security Week! Proclaimed by an official declaration from Congress, each year supporters of 401(k)-style defined contribution plans use this week to promote their products. We’ve decided to take back retirement security from the salesmen of the financial industry and focus on the most reliable source of retirement security: defined benefit pensions. Today’s blog post will discuss the true state of retirement security in the United States. On Wednesday, we’ll highlight how defined contribution plans contribute to the retirement savings crisis. On Friday, we’ll wrap up by focusing on the strengths of defined benefit pensions.

Baby Boomers nearing retirement face a stark reality when it comes to leaving the workforce. Almost 20 million working Americans between ages 55 and 64 have no money in 401(k) retirement accounts and do not have a pension. Will they be able to pay their bills and maintain their standard of living on just Social Security?

These near-retirees face little time to reap the benefit of compound interest to help grow their nest eggs at a time when interest rates are at an all-time low. With these factors working against them, financial advisors often suggest that pre-retirees keep working and avoid drawing on Social Security until their full retirement age or later.

Last year, the full retirement age started to move up, making retiring early more costly. For those born in 1956, the age at which Americans can receive full Social Security benefits is age 66 and four months. This full retirement age will continue to increase until 2022 when it reaches age 67.

The cost of funding fire fighter pensions in municipalities is growing faster than inflation. The president of the Illinois Fire Fighters Association, the Peoria fire fighters union president and an actuary discuss the funding issue for the 297 fire fighter pensions in Illinois. They offer potential changes that could relieve some of the financial pressure on municipal governments.