The article points out that consistent saving is key to securing retirement income, but starting late requires saving a much larger portion of income. The current system is described as nearly impossible and middle class people will be downwardly mobile into poverty in old age.
The article concludes with a discussion of the newly proposed Retirement Savings for Americans Act, which aims to improve retirement security by providing universal pension coverage, especially for low- and moderate-income workers. Leading the way toward a better system. This bipartisan proposal builds on the recommendations of Teresa Ghilarducci and Kevin Hassett. The plan would put eligible full-time, part-time, and gig workers who don’t have an employer-sponsored retirement plan in an account to contribute 3 percent of income. Most would get a matching contribution of up to 5 percent through a refundable federal tax credit, making it attractive to participate in the plan and making a fairer distribution of federal subsidies for retirement.