NIRS Rebuts Column on the Nation’s Retirement Crisis
In response to a column that appeared in The Los Angeles Times, NIRS submitted a letter to the editor rebutting claims that Americans are sufficiently prepared for retirement.
In the letter, NIRS indicates that the assertions is the column are misleading at best and misleading at worst. The letter points to U.S. Census Bureau data reveal that the median retirement account balance among working Americans is $0.00, while 57% do not own any retirement account assets in a 401(k) plan or individual retirement account. For those nearing retirement, it’s also a grim outlook. Some 68% of individuals 55 to 64 only have retirement savings of less than one times their annual income, which they’ll have to make last for decades.
The letter also highlights that compounding the retirement savings shortfall is rising medical expenses Americans will face as they age.
The response indicates that retirement crisis is solvable, but only when we acknowledge the problem and take action now to give Americans access to high-quality, low-cost retirement plans with professional investment management, risk pooling and lifetime payments.
Pensions Support a Stable, Experienced Public-Sector Workforce
Public pensions help government employers retain experienced career workers, reducing costly turnover and supporting the reliable delivery of essential public services, according to a report, Workforce Turnover and Retention in the Public Sector: Insights from Public Pension Plans. The research finds that while employee departures are concentrated in the first five years of service, retention is strong among workers who remain beyond that point.
80% of Americans Say U.S. Faces Retirement Crisis Amid Affordability Pressures and Debt
National polling research from the National Institute on Retirement Security finds that 80 percent of Americans believe the nation faces a retirement crisis, as rising costs, debt, and other affordability pressures make it harder to save. The survey also finds widespread caution about AI-generated financial advice and cryptocurrency in workplace retirement plans, while 85 percent say Washington should make retirement security a higher national priority.
