"In an ideal world everyone would generate sufficient savings on their own to help fund their own retirement. However most of the data shows that Americans are simply unable to do this on their own. Nor is the current system of savings consisting of 401(k)s and IRAs doing the job either. The next few generations may now be facing increasingly difficult retirement scenarios. The question is whether instituting real changes now can help save future generations from a similar fate." Read the full post @ Abnormal Returns
My knee-jerk reactions are several:
- Tell this to a worker earning $7.50-10.00/hour paying $3.89/gallon for gasoline that he'll have no choice but contribute 9% pre-tax to a retirement account and the premise becomes something of an outrage.
- I can see this already as yet another "account" which the US would borrow from a la Social Security (and still hasn't repaid).
- It's yet another scheme to increase inflows into investment vehicles which obviously broker/dealers (banks) would love.........but wait do small investors always benefit from investing? Tell that to a retiree whose 401k was wiped out twice in 10 years and who has now been forced back into the labor force........and you may have a tough sell.
Of course if they shouldn't do it is precisely why they probably will......
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