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Poll: Should We Be Forced To Save More?

hand touching the combination lock on a safe.The retirement savings crisis has been well documented.

Americans are not putting enough into their 401(k) plans or IRAs to sustain them after they leave the workforce. Pensions are near extinction for younger workers. And Social Security won’t offer enough of an additional benefit to fill the gap.

A lot of smart people are now trying to figure out how to fix a broken system.

Among the more intriguing proposals offered by folks like Alicia Munnell, the director of the Center for Retirement Research at Boston College, is a new government-mandated, but privately managed, savings program.

Munnell tells Bloomberg.com she hopes a mandatory savings account could replace 20% of pre-retirement income.

Larry Fink, the CEO of the huge investment firm BlackRock, also has called for forced savings by creating a program similar to a retirement plan Australia founded two decades ago.

Pie chart showing results from the latest Bankaholic poll

From a report on Time.com:

“In Australia, employers must contribute 9% of pay (rising to 12% in 2020) to every full- or-part-time worker between the ages of 18 and 70. This makes the accounts a little like a traditional pension in that the employer is funding them. But the accounts are owned and managed by individuals, as with a 401(k).

“The Australian ‘superannuation’ accounts were put in place just 20 years ago and have all but solved that country’s retirement savings crisis. Fink believes something similar would work in U.S. too. He suggests that employer contributions to these accounts be phased in over time, as they have been in Australia.”

Employees “might” be asked to set aside a percentage of their earnings as well, according to Fink.

What do you think?

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Should we be forced to save more either through mandatory employer or employee contributions?
View Results

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Comments (4)
1 Star2 Stars3 Stars4 Stars5 Stars (4 votes, average: 4.00 out of 5)
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4 Existing Comments
  1. A.Bundy said:
    on May 15th at 09:02 pm

    what is this, communism? if people wanna be ignorant of their future, so be it. if you force them to put aside a portion of their pay, you run the risk of them not spending or worse, not working. once they stop spending, down goes your economy and into another bailout of some sort.

  2. A.Bundy said:
    on May 15th at 09:05 pm

    secondly, banks give NO incentive to save. Why put $100,000 in a bank when all they pay you is .01% or $10 in interest. the interest rates today are a joke. bankaholic provides me with so much comedy relief these days when i visit the site. the rates are laughable at best.

  3. Jay said:
    on May 16th at 06:08 am

    Who the phuck has any money to save when the cost of living is sky high and all the A-holes on the local buisness channels tell us there;s no inflation everything is just wonderful!!
    The stock market is at all time highs so that means the economys around the world are great!!
    NOT!!!
    What a fantastic brain washing scheme the came up with to fool the people, if the stock market is sky high then things are getting better!
    I’ll make a prediction that our country will be in a depression in the next 2 or 3 years!

  4. howard said:
    on May 18th at 08:38 am

    Forced 401k saving is only good for the fat cats ( banks, fund managers, big rich guys ). The stock market is a great big pyramid scheme. You get your $$$ back if there are still more fools around the time you retire.