Employers Can Assure Retirement For Just a Few Bucks
InvestmentNews has a great piece that takes on the grim numbers behind Baby Boomers' retirement prospects. In short, the collapse of the three-legged retirement stool of an employer-based pension, Social Security, and personal retirement savings, combined with the stagnation in real wages, has left more older Americans vulnerable to poverty. According to the Government Accountability Office, more than 40% of Baby Boomers have nothing saved, meaning they'll be primarily relying on the average annual Social Security payout of $17,500. Not great.
The article continues that, in order for employers to help secure retirement for their employees, there's a pretty low bar that they can meet to help alleviate the potential crisis: $2.64/hour.
This is the shortfall that author Nir Kaissar calculates as the gap between the average living wage and the amount a retiree can expect to get annually from Social Security.
Head to InvestmentNews for the full piece, and let us know: do you think employers should add this $2.64 bump into the wage to help retirees?