The U.S. Department of Labor is paving the way for states to sponsor retirement plans for millions of private-sector workers who don’t have such programs on the job.
Workers 50 and older face a hurdle that younger peers don’t: how to overcome negative stereotypes that paint them as much more expensive, out of touch with technology and less productive.
For decades, the three-legged stool was the metaphor for funding retirement: Social Security, pensions and savings/investments. Because of the recession and drop in pensions, the stool started to shake. That hasn’t escaped the notice of our adult children as they watch parents head into retirement.
Congress recently carved a hole in a 40-year-old pension law that has prevented employers from cutting benefits earned by those already retired. This change applies to people covered under multiemployer plans that are in critical financial shape.
Americans are way short in their retirement savings, and President Obama's MyRA plan, which he unveiled last week, isn't the only new proposal that aims to help with that problem.
Economists say state retirement systems should have enough in assets to cover at least 80 percent of the pension money they owe retirees, but few states meet the 80 percent requirement--and some fall far shorter. A new report from the Pew Center on the States looks at the 10 states with the biggest pension gaps as of 2010:
Retirement ages must rise globally if everyone's gonna keep living longer and we don't want to bankrupt national pension systems, says a new international report from the Organization for Economic Co-operation and Development, an international organization with 34 member countries. Already, 67 is becoming the new 65, it says.
So much of the financial news about older Americans is downbeat. More of them are falling into poverty. A disproportionate number of older workers lost jobs in April. Will they get new ones? Don't hold your breath.
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