March 16, 2015

Nation’s Retirement Income Deficit Now $7.7 Trillion

At a hearing before the U.S. Senate Special Committee on Aging, Alicia Munnell, director of the Center for Retirement Research at Boston College, testified that over the last five years the nation’s Retirement Income Deficit (RID) has risen from $6.6 trillion to $7.7 trillion. The focus of the hearing was “Bridging the Gap: How Prepared are Americans for Retirement?”

The Retirement Income Deficit is the gap between what American households have actually saved today and what they should have saved today to maintain their living standards in retirement. The updated RID is based on projections of retirement income and wealth for American workers ages 30-60, using data from the 2013 Survey of Consumer Finances.

Also testifying at the hearing was NBC personal finance reporter Jean Chatzky. Both Chatzky and Munnell said the shift from defined benefit pension plans to 401(k)s are to blame for this retirement crisis. Munnell also testified that Social Security should be the backbone of the retirement system.

“Members of the Alliance don’t need financial experts to tell them that retirement security is at risk in this country,” said Barbara Easterling, Alliance President. “We need to strengthen and expand Social Security and protect earned benefits for today and tomorrow’s retirees.”

Tell the White House Conference on Aging that Strengthening Retirement Security Must Be a Priority
Please sign our petition to pledge your support and ensure that retirement security is a priority at the July 2015 White House Conference on Aging. We need your support as we fight to preserve, strengthen and expand Social Security and protect our promised employee pensions and earned benefits.
Click here to take action now!

Prescription Drug Spending Up in 2014
Prescription drug spending increased nearly 12 percent last year according to a report from Express Scripts. Yahoo Finance Senior Columnist Michael Santoli points out that people are consuming more health care. “The market for drugs for chronic conditions is ramping up,” he says.

“Rather than threatening cuts to Medicare benefits, Congress should enact the Medicare drug rebate program,” said Ruben Burks, Secretary-Treasurer of the Alliance. This proposal would require drug companies to provide discounts to the federal government for low-income Medicare beneficiaries, saving the government and taxpayers $141 billion over 10 years.

Registration is Open for our 2015 Legislative Conference in Washington, DC
Join hundreds of Alliance members July 7-10 and discuss issues concerning Social Security, Medicare, the Affordable Care Act and retirement security with labor, government and community leaders. During the conference attendees will go to Capitol Hill to speak directly to Senators and Representatives. “The legislative conference is a great opportunity to share your experiences and advocate to strengthen and expand Social Security and protect Medicare,” said Alliance Executive Director Richard Fiesta.

With talks of cutting Social Security and Medicare, it is critical that we get our message to protect, strengthen and expand Social Security and Medicare directly to lawmakers and decision makers. We will have skill-building workshops around organizing, effective advocacy, how to communicate your message and leadership development. The conference will lead into our “Medicare Turns 50” events. Register today

The Alliance was saddened to learn of the death of Jared Teichmeier, a Nebraska Alliance for Retired Americans Board Member. Read more about his life here

Medicare Turns 50…
Medicare has been critical to retirees’ retirement security for 50 years despite numerous attempts to defeat, repeal or cut it. Ronald Reagan said “[I]f you don’t [stop Medicare] and I don’t do it, one of these days you and I are going to spend our sunset years telling our children and our children’s children what it once was like in American when men were free.”

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Topics: Affordable Care Act

One thought on “Nation’s Retirement Income Deficit Now $7.7 Trillion”

  1. I was just wondering how that excuse for a governor rick the trick perry took away social security money from texas reteries. Isn,t social security a national not a state tax? people like me earned their 40 quarters before they taught school in texas. I paid taxes in Georgia, Alabama, texas, Oklahoma, new mexico. all for my social security the state of texas stole from me because I retired here. also add guam to that list. shame on congress and the president for allowing this.

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