August 4, 2021
A group of 31 organizations including companies and economic institutes expressed their concern that Americans could use some help with their retirement security, MarketWatch reports. According to their public letter published on the Bipartisan Policy Center’s website, the legislation on pension, Social Security, and other savings or healthcare concerns should become a priority for the government.
The letter addressed to the President proposes the creation of an inter-agency task force from some of the government departments. Some of those who signed the said letter were Prudential, Edelman Financial Engines, and Employee Benefit Research Institute.
“The proverbial three-legged retirement stool (Social Security, employee pensions, and personal savings) is shakier than ever. Social Security and Medicare face financing shortfalls, while pension plans have largely disappeared for younger workers,” the letter states. The letter adds that there are new risks to retirement security with the rising life expectancies, health care, and all-time low interest rates.
A Holistic Approach May Be the Answer
Jason Fichtner, vice president, and chief economist at the Bipartisan Policy Center, thinks that a holistic approach to the matter can be the answer to all problems regarding retirement security. Everything leading to retirement such as student loans, dealing with money and taxes, and retirement savings when the unexpected happens should get more attention. Namely, he stated: “We need to think more holistically, not just about retirement but the milestones and episodic shocks that happen.”
There’s a danger that many Americans might fall short on money in their retirement years. That’s why people who are close to retirement should have more guidance on how they can prepare for the retirement days to come. Afterward, they can make an informed decision whether to opt for the pension plan or the 401k plan.