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Storm clouds are gathering for a blowout that will affect millions of Americans' retirements
Catherine Collinson
Among retirement experts, certain facts are self-evident.
Population aging and increases in longevity are wreaking havoc on long-standing assumptions about retirement and how to fund it. Traditional pension plans that offer guaranteed retirement income are vanishing, supplanted by 401(k)s.
And, this week marks the 10-year anniversary of when Congress took an important step in helping Americans save and prepare for retirement through the passage of the Pension Protection Act (PPA).
We are indeed better off because of the PPA’s affirmation of the Saver’s Credit, higher retirement plan and IRA contribution limits, catch-up contributions, and its facilitation of “automatic” plan features. What’s more is the PPA is an inspiring example of how Congress can unite in a bipartisan effort on a critical issue to implement positive change.
But while the PPA made significant strides, many — including myself — now realize that it simply did not go far enough toward helping Americans achieve a secure retirement. Ten years later, the storm clouds are intensifying over the impending retirement crisis and Americans from all generations are worried and uncertain about how they’ll afford retirement.
According to the latest annual retirement survey from the Transamerica Center for Retirement Studies (TCRS), one of the largest surveys of its kind and which I have directed for many years, 45% of Boomer workers are expecting a decrease in their standard of living when they retire. A staggering 83% of Generation X workers believe they’ll have a harder time achieving financial security than their parents’ generation. Among Millennials, the youngest generation in the workforce, only 18% are very confident about their future retirement.
Read more: http://www.businessinsider.com/retirement-security-is-a-pressing-issue-2016-8
Catherine Collinson
Among retirement experts, certain facts are self-evident.
Population aging and increases in longevity are wreaking havoc on long-standing assumptions about retirement and how to fund it. Traditional pension plans that offer guaranteed retirement income are vanishing, supplanted by 401(k)s.
And, this week marks the 10-year anniversary of when Congress took an important step in helping Americans save and prepare for retirement through the passage of the Pension Protection Act (PPA).
We are indeed better off because of the PPA’s affirmation of the Saver’s Credit, higher retirement plan and IRA contribution limits, catch-up contributions, and its facilitation of “automatic” plan features. What’s more is the PPA is an inspiring example of how Congress can unite in a bipartisan effort on a critical issue to implement positive change.
But while the PPA made significant strides, many — including myself — now realize that it simply did not go far enough toward helping Americans achieve a secure retirement. Ten years later, the storm clouds are intensifying over the impending retirement crisis and Americans from all generations are worried and uncertain about how they’ll afford retirement.
According to the latest annual retirement survey from the Transamerica Center for Retirement Studies (TCRS), one of the largest surveys of its kind and which I have directed for many years, 45% of Boomer workers are expecting a decrease in their standard of living when they retire. A staggering 83% of Generation X workers believe they’ll have a harder time achieving financial security than their parents’ generation. Among Millennials, the youngest generation in the workforce, only 18% are very confident about their future retirement.
Read more: http://www.businessinsider.com/retirement-security-is-a-pressing-issue-2016-8
