MyRAs Not Enough to Fight 'Retirement Crisis'
President Obama's proposal is only a modest start: opinions
By Evann Gastaldo, Newser Staff
Posted Jan 30, 2014 1:24 PM CST
President Barack Obama speaks at General Electric’s Waukesha Gas Engines facility, Thursday, Jan. 30, 2014, in Waukesha, Wis.   (AP Photo)

(Newser) – President Obama's MyRA proposal, announced at the State of the Union, is not enough to save the retirement system. At least that's the takeaway from two columns on the plan:

  • "The system is failing," write the editors at Bloomberg. Workers aren't saving enough, employers aren't contributing enough, and Social Security benefits will barely keep people afloat when they can no longer work. But, unless some sort of incentive is given or unless they're forced to opt in, most people won't participate in MyRA, either. And without congressional approval, employers can't be forced to offer MyRA plans. So how do we fix this broken system? It will be a long process, requiring bold moves including "gradual reform of Social Security ... so that more generous benefits are given to those who need them, with the cost recouped from the better-off through lower benefits and higher contributions." Full column here.

  • At the Los Angeles Times, Michael Hiltzik agrees: Sure, this isn't a bad idea, but it doesn't go far enough. MyRA yields will be low, and the temptation to withdraw money early will be high. In fact, all of Obama's proposed ideas so far have been "only token solutions to the retirement income gap." The truth is, a "retirement crisis is looming for millions of Americans." One potential solution supported by a small but growing number of those in Congress: Increase Social Security benefits. Full column here.

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Showing 3 of 51 comments
JERZJOE
Feb 1, 2014 8:36 AM CST
all I know all this will be over soon!! the rep take control in Nov 2014, repeal obamacare !! in nov 2016 Gov. Christie will be prez!! and everything will be AOK in the USA on Jan 20, 2017!! period!!
FarmerMichael
Feb 1, 2014 12:18 AM CST
Not saving enough? Tell that to all the folks of failed businesses that hit the safety net on their pension funds...and got maybe 40% of expectation. Let's see, it started with the airline pilots. And worked its was way up to state pension systems. And let's not forget Detroit's bankruptcy. How can you blame folks for not saving when folks who did get screwed?
BarackMustGo
Jan 31, 2014 6:50 AM CST
It'll take 40 years of Republican presidents simply to undo all the damage that dumb, racist, schmuck Obama, to this day, continues to do.