Huffington Post (October 15, 2015)
A key source of the growing retirement crisis is that employers of over half of private sector workers do not provide retirement plans beyond mandatory Social Security, which was not designed to proved full retirement security. In response, twenty-five states are developing retirement savings plans to which the affected workers could contribute.
Those plans, even in combination with Social Security, will not be enough to resolve the retirement crisis, but they could be helpful if designed as true public options to the retirement savings vehicles available from the private financial services industry.
Private retirement savings plans do a good job of providing profitable revenue for the financial services industry but at the expense of future retirement income for participants.
Public option plans, on the other hand, without profit needs could be designed to maximize retirement income for participants. Doing so would require patching the two major sources of profit leakage: corporate profiting from administration and investment of retirement savings plans; and profiting from the sale, administration, and control of retirement annuities.