Insights Blog

A Great (and Impossible) Plan to Fix Retirement

September 16, 2015

Bloomberg View's Christopher Flavelle reports in "A Great (and Impossible) Plan to Fix Retirement" that Americans are woefully unprepared for retirement.

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SCEPA Director Teresa Ghilarducci's proposed policy fix is, despite political hurdles, the only potential solution.

The problem is simple: almost half of Americans aged 55-64 have no retirement savings whatsoever, and those who have some savings do not have enough to sustain them in retirement. Ghilarducci's solution: supplement Social Security with Guaranteed Retirement Accounts (GRAs), into which workers and their employers deposit 5% of their salary annually.

According to Flavelle, "The idea deserves attention, and not just because Ghilarducci's role with the campaign suggests Clinton could push something along the same lines if she becomes president. Just as important, what she's advocating illustrates the depressing difficulty of fixing retirement policy: For all the obstacles her plan presents, it's hard to think of anything better."

About SCEPA

SCEPA works to focus the public economics debate on the role government can and should play in the real productive economy - that of business, management, and labor - to raise living standards, create economic security, and attain full employment.