Encouraging individual retirement funds

[stray cat]

We need to encourage and promote individual retirement plans and supplement low income wage earners. This should supplement social security benefits and not replace them. This seems to be the democrats official position and I think it is a good one.


http://www.washingtonpost.com/wp-dyn/articles/A14274-2005Jan16.html?nav=hcmodule

Rep. Rahm Emanuel (Ill.), chairman of the Democratic Congressional Campaign Committee, said on NBC that Democrats "believe in individual retirement plans as a supplement to Social Security," whereas Republicans "believe in individual retirement plans as a way to supplant Social Security."


"What we can't do is take the guaranteed retirement benefit for seniors and replace it with a guaranteed fee for Wall Street," said Emanuel, a former managing director of an investment bank.

[alarimer]

1. most people don't have the extra funds

I certainly don't. I have no retirement accounts other than that offered by my employer and SS. I am 36 and make $30,000. I have been at my job for almost 8 years and I am at the top of my pay scale for my job classification (since the state has eliminated merit raises we only get occasional cost of living increases). Hopefully when I get my master's I can find a better job but it is pretty late in the game for me to start saving much for retirement.

[Yupster]

4. You can do them for $ 25 a month

I realize some people can't even afford that, but I bet a lot of people who think they can't afford $ 25 a month maybe could.

[NC_Nurse]

2. I heard a guy on NPR from the Brookings Institute...

sorry I don't remember his name. He said that Social Security was one of the few programs that bridge the rich-poor gap and that privatizing parts of it would widen the gap more.
Even if people put the same amount of money in their private account, the rich can afford to have professional help, or may already be familiar with the workings of the market. The poorer folks, OTOH, would be investing on their own and in the dark a lot of the time...
His comments were great...I think it was Fresh Air if anyone wants to look for the link...

[madfloridian]

3. Low income wage earners can NOT afford both.

You can encourage the hell out of them, and they still can not afford it.

People living hand to mouth can not pay into Social Security AND a private account. They simply can not. If it comes in the form of a tax refund they might spend it on necessities for living.

[madfloridian]

5. Clinton intended to use a surplus for matching funds.

We have no surplus now.
A little info which shows this may be the same thing as the ownership society...not sure. Maybe modified language?


Children's Saving Accounts
http://www.fordfound.org/news/view_news_detail.cfm?news_index=115

Clinton, Roth, Monihan introduce USA's, which was at the time of the surplus.
http://www.ici.org/issues/ret/arc-leg/99_pres_soc.htm