Narrowing the Racial Wealth Gap

Two hundred twenty-eight years. That’s how long it would take for the average household wealth of black families in America to reach the average wealth of white families today, according to a new report by the Corporation for Enterprise Development (CFED) and the Institute for Policy Studies. For Latino families, it would take 84 years. This startling new perspective on economic inequality has grabbed headlines in recent weeks. But what is not making the news is that these statistics are …

Regulations Enable Millions to Build Retirement Security Through State Plans

Final Department of Labor (DOL) regulations have opened the way for the largest expansion of retirement plan coverage in several decades. The regulations provide much-needed guidance to states that want to establish state-sponsored automatic IRA plans for small-business employees. Earlier, DOL provided guidance for state-sponsored multiple employee plans (MEPs) and marketplaces. About 55 million Americans work for companies that don’t offer them the ability to save for retirement through payroll deduction. Most of these workers are employed by small businesses, …

Social Security Celebrates 81 Years!

Today, Social Security turns 81 years old. That’s a birthday we celebrate with pride — and I hope you take a minute to sign our birthday card! But it’s also a timely reminder that action is needed. If our leaders fail to update Social Security, future retirees could face benefit cuts of nearly 25 percent. Think about that! A cut that large would send shock waves around the country. It would hurt millions of people and push many into poverty. …

No one-size-fits- all solution: The goal of pension sustainability is key

My pop was a Buffalo city bus driver for 25 years.  Just like millions of Americans – firefighters, nurses, teachers, and other public employees – Pop worked hard and counted on having his pension to help retire with confidence and dignity.  The long-term sustainability of today’s public pension programs is just as critical to millions of Americans. Today, I have encouraging news for public employees.  A new report, Significant Reforms to State Retirement Systems, issued by the National Association of …

Nearly 1 Million More Workers Can Save for Retirement … Millions More to Go!

May is proving to be a historic month for both workers and employers across the country! Since I last wrote on this topic in February, we at AARP have continued to fight hard to establish Work and Save plans in the states, a convenient way for millions of workers to save for retirement through an easy payroll deduction. And we have great news to report! Last week, Gov. Larry Hogan (R) took a monumental step toward helping to ensure a …

Savers Need a Projection of Their Full Retirement Income

Individuals need better information to know how much to save for retirement. A good place to start is to provide them with a projection of their total retirement income that includes the monthly income they can reasonably expect from their retirement savings and their Social Security benefits. This combined estimate needs to be on one statement. Fifty-nine percent of U.S. savers in one poll reported being very or moderately afraid that they will not have enough money in retirement. That …