Americans lost over $1 trillion in their 401(k)s in 2008. Ouch! Evidence, says Teresa Ghilarducci, a New School for Social Research economist, that America needs to radically alter how workers save. She proposes eliminating the tax breaks for 401(k)s and replacing them with guaranteed retirement accounts. Under Ghilarducci’s plan, outlined in her book When I’m Sixty-Four: The Plot Against Pensions and the Plan to Save Them, all workers who don’t have a traditional pension would be required to contribute 2.5 percent of their income to a government account with a 2.5 percent employer match. A 3 percent return above inflation would be guaranteed by the government. U.S. News asked Ghilarducci about her controversial retirement plans.
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Posts Tagged Retirement
Retiring In Stlye
Jan 16
President Bush has only one more Monday workday, then it’s of to Texas for a well funded retirement. He’ll receive $201,300 per year plus an allowance for a office and other benefits. According to the Congressional research Service the total cost will be $1 million a year.
Of course he’ll have to supllement that with speaking engagements. Who can afford to live on their pension alone?