Thursday, March 03, 2016

401(k)s Are a Complete Failure

Of course it is no surprise more people than ever before are vulnerable in their old age. That is because of federal policies that made it easy for companies to ditch pensions and replace them--if at all--with those useless 401(k)s.

link

Of course never married or single women fare the worst of all, thanks to a system that denigrates women's work assuming as it does that they don't need as much money as men do because they are supported by men, reality to the contrary:

Single people and women face particular challenges. Single people tend to be less prepared for retirement than their married counterparts. Even among those approaching retirement (age 56–61), most single men and women do not have any retirement account savings (not shown on chart). In the past, married women were less likely to be covered through their own employers than were single women, but married women’s participation increased as their earnings grew (Morrissey and Sabadish 2013). In the new millennium, the biggest change has been the decline in the share of single men with retirement account savings and in the amount single men have saved in these accounts (Figures 14–15).

Though declines for single men closed savings gaps between single men and women, women generally remain more vulnerable than men because they live longer and are more likely to outlive their savings—and, in the case of married women, their spouses. Women can expect to live around 2.3 years longer than men in retirement (Social Security Trustees 2015). Because women earn less and accumulate less retirement savings and benefits than men, never-married, divorced, and widowed women are at greater risk of experiencing hardship in retirement than their male counterparts.

Yet people like Hillary Clinton still believe women in the top one percent of households should get Social Security "credit" because they can afford to stay home while the rest of us are totally fucked over since we as women are underpaid.

She, like many elites, doesn't understand the problem.

To update this post, here is another article stating the obvious that 401(k)s are an abysmal failure.

Unlike rich people who save and invest anyway because they have the disposable income to do so, most people cannot save the literally hundreds of thousands dollars to equal even a modest pension.




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