Suspending the 401(k) Match, Keeping a Pension

Patrushka

Kenny of AL is frightening.

Olivia Brown of MS @ Sep 16, 2009 15:06:06 PM

You are barking up the wrong tree

The Folks who should be in PRISON... Barney Frank and Chris Dodd!!! Franklin Reins... ACORN and Barak OBAMA for Forcing Banks to loan TRILLIONS OF DOLLARS TO FOLKS WHO COULD NOT PAY THEM BACK!!

kenny of AL @ Jul 09, 2009 23:39:06 PM

Retirement Security for All

Mike, I couldn't agree more with many of your points.

Individual savings accounts were supposed to provide riches for us in retirement, instead they made 401(k) service providers rich in fees, before the market tanked. Most people lost 40% or more of their nest eggs. I'm a young worker who eventually may recoup my losses, but what of my mom who is 59 this month? How will she supplement her Social Security?

We have to get back to basics, we need Social Security, a traditional pension--or something close to it--that provide for monthly retirement income that you can't outlive, AND individual savings in investment vehicles that are low fee and low/moderate risk. Few people are going to get "rich" in retirement on this model, but fewer still will fall through the cracks. Congress and the feds spent the last 20 years propping up the 401(k) industry and the average near retiree has $20,000 in their accounts to show for it. We can and must do better.

Conversely, the average public employee receives around $20,000 annually if they are covered by a traditional pension. Pensions in the public sector are paid for by investment returns (professionally invested), employee contributions and employer contributions. Don't get me wrong, public pensions lost money too, but not near as much as the average person with a 401(k), and these losses were spread across all participants so that those who are near retirement won't have their retirement income pulled out from under them.

DB Lady of VA @ Jul 09, 2009 16:02:20 PM