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.
The retirement security landscape looks rather bleak at the moment. According to a recent report from the National Institute on Retirement Security (NIRS), more than 100 million working-age Americans do not own any type of retirement savings. That means nothing in an employer-provided 401(k) plan, an Individual Retirement Account (IRA), or a pension plan. That is 57 percent of adults who are not preparing for retirement at a time when financial experts recommend saving more than ever.
