Wednesday, October 22nd, 2014

Report Shows Many People Are Not Saving Enough For Retirement

Many people are not saving enough for retirement, and even those who are saw their savings take alarming dips during the recession. Now, a new report calls the traditional IRA and 401K plans inefficient and risky – and suggests a different kind of retirement account. The Center for American Progress calls it the "SAFE Plan," professionally managed, but overseen by a board made up partly of plan members. Gary Burris with the Economic Opportunity Institute says the SAFE Plan uses an investment strategy known as "smoothing" for less risk and more long-term stability.
The report also says there are too many hidden fees associated with the current crop of retirement accounts – fees that erode investors' nest eggs. The SAFE Plan would require approval by Congress.

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