U.S. seniors could be facing an apocalypse of sorts thanks to a retirement system that’s underfunded by trillions of dollars and is badly in need of an overhaul, writes TIME Magazine.
The strength of the nation’s three “pillars of retirement”—Social Security, employer-sponsored plans, and personal savings—have waned in recent years, increasing the need for creativity and innovation in addressing a looming problem.
What’s needed is “out of the box thinking” and a “holistic” solution for a retirement system in the hole by at least $6.6 trillion according to one analysis, writes TIME based on the findings of a September 2013 BlackRock Viewpoint on addressing America’s retirement needs. The white paper explores the challenges facing the retirement system, including increased lifespans paired with less savings and entitlement programs with mounting budgetary issues.
“Blackrock envisions a sweeping overhaul that will shore up all three pillars—but not without sacrifice,” says the TIME article.
Policy changes that could positively impact the nation’s retirement system could include raising the Social Security eligibility age; converting 401(k) savings into annuities; and requiring people to participate in their companies’ 401(k) plans at rates determined by their age, salary, and accumulated savings.
Read the full article at TIME.
Written by Alyssa Gerace
