Alicia H. Munnell

Coming Up Short Alicia H. Munnell

As the ageing of America continues, the development and security of retirement income is more important than ever. The number of people over age 65 is expected to double by 2030. That trend will continue, accompanied by worries about stock market volatility, corporate malfeasance, a rapidly changing economy, and the viability of Social Security. In this book, two experts on retirement policy analyse 401(k) plans, the fastest-growing type of employer-sponsored pension and a vital source of retirement income for the American middle class. dominant form of private pensions. In accessible language, they explain how such plans work and discuss their popularity. There are many advantages: the plans are portable, a key consideration in this era of downsizing and mobile labour. They afford some sense of control during the investment stage. They are generally less costly for employers than defined benefit plans. And they perform well in a hot stock market. making to the individual, who must decide whether to join, how much to contribute, and how to invest. The employee must monitor unpredictable Wall Street, become adept at investing strategies, and balance prudence against the pressure to invest disproportionately in one's own employer. The participant also has to decide what to do with the lump-sum payment received at retirement. provide workers with the security they need, and they offer several suggestions in that direction.
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