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Bronze Conversationalist

MANDATORY Retirement Saving

What do you think of MANDATORY retirement savings on the job?

 

Lol, I was NOT happy when the hospital I worked at made me save 3%. 13 months later, I was do ELATED to have the savings. They are now talking about making ALL employees SAVE for savings.

Link to article on Google News 

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Honored Social Butterfly

SECURE ACT 2.0 - once again (like the SECURE ACT 1.0 passed in December 2019) it is messing with people's accounts that are close to retirement. If passed, the bill would not only require auto-enrollment in employer-sponsored retirement accounts but increase the age for required minimum distributions, which is when an individual is forced to take withdrawals from their 401(k) plans and individual retirement accounts.

 

That's already been done with the SECURE ACT 1.0 - guess they are making it higher.  Too bad for many of us who are already having to take RMD's  😥

 

I'll have to keep up with this one - personally, I am not real keen on employers spending employees money - I would prefer that they give the workers ALL their money and educate them on retirement or health insurance and let the employees learn and do it for themselves.  Otherwise, aren't we still just babysitting employees?  Using their employers as surrogates for parents - Making decisions for adults that should know how to do it themselves - This bill seems to be doing a lot of that - based on the linked article.  Am I living in a fantasy land with my expectations?

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Regular Contributor

Your proposal is ideal - educating workers about personal finance and health, but I doubt that would mesh well with politics.

Wanjiru Warama

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Regular Social Butterfly

ERISA 74 relieved corporations of pension funding and portfolio performance. They BEGGED for this because they wanted to be relieved of pension longevity and payout risks.  FACT is investing was dumped on employees with ZERO experience. To that end some retired with nice 401k assets while others did NOT. 

It is obvious WE need to do something to require workers save or they become wards of the state.  While SSA was NEVER anything but designed to be supplemental to retirement savings many today EXPECT it should afford them a decent retirement lifestyle. WE cannot afford that!!

As to HOW, I would recommend some government administered pool of ETFs across the investment spectrum, ie DOW, S&P,  Nasdaq  plus international, etc.  where a servicer effects trades on behalf of employees vs employers contracting with the likes of Fidelity, etc to afford employees investment MF options.  

View solution in original post

Honored Social Butterfly

SECURE ACT 2.0 - once again (like the SECURE ACT 1.0 passed in December 2019) it is messing with people's accounts that are close to retirement. If passed, the bill would not only require auto-enrollment in employer-sponsored retirement accounts but increase the age for required minimum distributions, which is when an individual is forced to take withdrawals from their 401(k) plans and individual retirement accounts.

 

That's already been done with the SECURE ACT 1.0 - guess they are making it higher.  Too bad for many of us who are already having to take RMD's  😥

 

I'll have to keep up with this one - personally, I am not real keen on employers spending employees money - I would prefer that they give the workers ALL their money and educate them on retirement or health insurance and let the employees learn and do it for themselves.  Otherwise, aren't we still just babysitting employees?  Using their employers as surrogates for parents - Making decisions for adults that should know how to do it themselves - This bill seems to be doing a lot of that - based on the linked article.  Am I living in a fantasy land with my expectations?

View solution in original post

Regular Social Butterfly

ERISA 74 relieved corporations of pension funding and portfolio performance. They BEGGED for this because they wanted to be relieved of pension longevity and payout risks.  FACT is investing was dumped on employees with ZERO experience. To that end some retired with nice 401k assets while others did NOT. 

It is obvious WE need to do something to require workers save or they become wards of the state.  While SSA was NEVER anything but designed to be supplemental to retirement savings many today EXPECT it should afford them a decent retirement lifestyle. WE cannot afford that!!

As to HOW, I would recommend some government administered pool of ETFs across the investment spectrum, ie DOW, S&P,  Nasdaq  plus international, etc.  where a servicer effects trades on behalf of employees vs employers contracting with the likes of Fidelity, etc to afford employees investment MF options.  

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Bronze Conversationalist

@Gorm50 I appreciate you stopping by to join our discussion 🙂

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Regular Contributor

Your proposal is ideal - educating workers about personal finance and health, but I doubt that would mesh well with politics.

Wanjiru Warama

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Bronze Conversationalist

@WanjirusBits I appreciate you stopping by to join our discussion 🙂

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Bronze Conversationalist

Hi @GailL1 to be honest I have not researched this at all and was super annoyed in August 2017 when I was hired at the hospital. I guess with Social Security eventually going bye, bye - they are trying to have something in place. I am so RELIEVED my hard-headed daughter (lol, I was too at her age) is THINKING about her OLD age 😉

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Honored Social Butterfly

@AngelaS579497 

But would your "hard-headed' daughter like being forced to do it (mandated)?

Right now, the employer has an option to set up a plan, your daughter has the option as to how much of her pay to contribute.  This bill places forced actions on both the employer and the employee, the way I am reading it - like I said, will have to follow it and look at the legislation - it is a do-over from 2020.

Bronze Conversationalist

Lol @GailL1 she probably would.

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