"Since the 1970s, the share of employers providing defined-benefit pension plans that guarantee workers a set income upon retirement has shriveled. Instead, most workers now rely on defined-contribution plans--primarily 401(k) accounts--in which employers commit only to providing funds that workers can invest, and the amount of money available upon retirement depends entirely on the workers' skill (and luck) in navigating the financial markets. Defined-contribution plans undeniably provide workers with more control over their retirement investments, but they also expose employees to far more risk, as those hoping to retire soon were painfully reminded when their 401(k) plans plummeted this week. A similar transfer of risk is evident in health care, because fewer employers offer insurance to their workers, and even those that do shift more of the cost onto employees."
In National Journal, Ronald Brownstein explains how the presidential candidates offer starkly differing proposals in promoting economic security.
Subscribe to:
Post Comments (Atom)
1 comment:
As Brownstein points out, this election is a "fork in the road" regarding middle class economic security. If McCain wins, the middle class loses.
Post a Comment