As Boomers are preparing to retire, the news is full of stories about how their 401(k) plans are coming up short.Â Most of the stories imply that itâ€™s the Boomers own fault for not saving enough.Â That explanation, though, grossly distorts the cause of the growing retirement crisis in the United States that was fueledContinue reading “Why 401(k)s Failed”
Thomas Geoheganâ€™s â€œGet Radical: Raise, Donâ€™t Save, Social Securityâ€ (New York Times, June 19, 2011) eloquently makes the argument that Social Security revenues and benefits both need to be raised, especially since 401(k)s have failed to provide sufficient retirement income.
ïƒ˜ With a few exceptions, Defined-Contribution Plans were not initially created as retirement vehicles but rather as supplementary savings accounts ïƒ˜ With a Defined-Contribution Plan (401k, 403b, 457), only your contributions are defined ïƒ˜ A Defined-Contribution Plan shifts all the responsibilities and all the risk from the employer to the employee; thus, your benefit isContinue reading “Guest Post: Defined-Contribution Plan v. Defined-Benefit Plan by Glen Brown”
Ron Lieberâ€™s â€œShedding Light on Excessive 401(k) Feesâ€ (New York Times, June 3, 2011) provides a useful concise introduction to the myriad fees embedded in 401(k) and other private retirement investment plans and how they add up to substantial losses for participants. It is important though to note that even if courts or Congress findContinue reading “â€œShedding Light on Excessive 401(k) Feesâ€ â€“ New York Times article”
In â€œEasing Out the Gray-Haired,â€ Nelson D. Schwartz (New York Times, May 28, 2011) describes the problem that law firms and other businesses have when older Â workers resist retiring after their productivity has begun to decline.Â It is in the interest of the firms, according to the article, to replace them with younger, more productiveContinue reading “The Hammer and Anvil: Older Workers Pressured to Retire Despite 401(k) Crisis”
http://www.guardian.co.uk/education/2011/may/01/headteachers-strike-ballot-pensions-reform The largest union of head teachers in the United Kingdom may launch a national strike over a government plan to reduce pension benefits.Â The government proposals would raise the minimum retirement age to 68 from 60 and 65, increase contributions, and base the amount of the pension on the career income average rather thanContinue reading “National Teachers Strike Possible in UK over Pension Benefit Reductions”
David A. Stockman, Ronald Reaganâ€™s Director ofÂ Management and Budget, came right out and said it in an April 24, 2011 New York Times op-ed, â€œThe Bipartisan March to Fiscal Madness:â€Â Social Security should be reduced to a means tested program that would benefit only the poor. Instead of being the primary source of middle andContinue reading “Stockman’s March to Social Madness”
The alleged long term shortfall in Social Security revenue can be easily remedied if the rich were required to pay taxes for the program based on their total incomes as they are required to for other parts of the federal budget such as defense. Right now they pay Social Security taxes on currently only theContinue reading “Removing the Income Cap and Taxing Property Income: Two Easy Ways to Assure Social Security Solvency”
Reposted from This Week in Sociology, April 4-10, 2011, edition 3 http://www.thisweekinsociology.com/ Since 1981 shaky 401(k) schemes that depend on stock market investing have increasingly replaced secure, traditional pensions in the United States. The financial services industry encourages a belief that these schemes produce generous benefits. But 30 years after their introduction, the first generationContinue reading “From Connecticut to Chile: The Neo-Liberal Assault on Retirement Security (article)”
You Tube video of James W. Russell speaking at the Left Forum, Pace University, New York City, March 19, 2011.Â Click here.