As the attacks continue on the best retirement security system in the world – defined benefit pensions – in favor of defined contributions plans, a blog by Edward Siedle on Forbes web site makes a stark prediction for an entire generation that is moving into their most vulnerable years effectively destitute:
We are on the precipice of the greatest retirement crisis in the history of the world. In the decade to come, we will witness millions of elderly Americans slipping into poverty. Too frail to work, too poor to retire will become the “new normal” for elderly Americans.
The catastrophic failure of 401k defined contribution plans and the resulting crisis was foreseen and preventable, resulting from inadequate regulatory oversight and unchecked industry greed. There is still time to help the Baby Boomers recover and save younger workers from this nightmare. However unless we acknowledge the mistakes of the past and make appropriate changes we cannot restore the dream of a secure retirement for America’s workers. Join with me in calling for an investigation into the causes of the spectacular failure of 401ks, the cruelest hoax ever played upon the nation’s workers.
Scary prediction and assessment. And worse, it’s probably pretty accurate.