How can employers encourage those who work for them to save for retirement?
A 2019 study by the Pension Rights Center found that only about 37% of private sector and government employees had a retirement or pension plan.
What are the implications of this low rate?
People cannot and should not work all their lives. In the United States, most workers retire around 65 when they saved enough money to support themselves. In addition, most older people receive social security benefits of they paid throughout their career. For those who have been able to save their own money, via a retirement fund or a pension, social security benefits help increase total income they will be paid monthly for the rest of their lives.
However, with such a large number of workers not having access to retirement programs, the burden of the social security system is developing. Plus, Americans are living longer and a study by the Employee Benefit Research Institute fthat 40 percent of workers will use up their personal retirement savings before they die.
Brookings has released a new report showing â50 million Americans work full time with no savings in their workplace beyond Social Security.To combat this problem, researcher Joshua Gotbaum suggests that the government force employers automatically register their employees “in an employee savings plan (from which they can withdraw).”
Learn more about what researchers suggest tackling the lack of retirement here.