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View Diary: The "Fiscal Cliff" and the Coming Retirement Crisis of the Middle Class (90 comments)

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  •  My defined benefit plan is a real godsend. I think (10+ / 0-)

    everyone should have a retirement like mine. Working forty years in the same school district helped, of course.

    •  You hit the nail on the head--a defined (3+ / 0-)
      Recommended by:
      jfdunphy, NapaJulie, divineorder

      benefit plan is wonderful.

      But there are next to nonexistent today.  With the exception of the Boomer and older generations who did get and stay in a job (mainly public service as in a school district, etc.) for forty years now, almost no one (including Boomers) have them, anymore.

      That has to be one of the biggest misconceptions out there--that MOST Boomers have a defined benefit retirement plan.  Not so, folks.

      And, it's not likely to happen any time soon.

      Senator Tom Harkin has a plan to make it mandatory to have be private retirement savings account.  Here's the link to his USA Retirement Fund.

      Initially, it is claimed that one can "opt out." But I don't buy for a minute, that this plan is not intended to become mandatory (meaning no opt-out) in time.

      I believe this, because with mandatory health insurance coming online in 2014, does anyone actually believe the folks who won't qualify for a health premium (exchange) subsidy (couple making more than $46,000) but are more or less working poor, are going to turn around and voluntarily signup to further impoverish themselves in order to save for their retirement?

      So, while I'm open to looking into this savings vehicle further, I'm not sold on it.  I would need to see the details, first.

      Here's an excerpt from Harkins's plan:

      Employers’ only obligation with regard to the USA Retirement Funds would be to automatically enroll employees, ensure that employee contributions are processed, and make modest contributions.  importantly, employers would not “guarantee” the USA Retirement Funds or have any residual responsibility to provide additional funding or make up shortfalls.
       
      But I'm glad to see that at least you will have a decent retirement, Lorikeet.  

      Mollie

      “If a dog won’t come to you after having looked you in the face, you should go home and examine your conscience.” -- Woodrow Wilson

      by musiccitymollie on Thu Jan 03, 2013 at 03:51:29 PM PST

      [ Parent ]

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