An interesting take on retirement planning for “poor” people. In my view, people should not be “pushed” to save for retirement. When the concept of “pushed” is used here, by me, it refers to by some sort of Government mandate. Should retirement planning be encouraged. Yes, indeed…even for the poor. The key, especially in this economic environment, is not really trying to “save” for retirement, yet increase your cash flow. Saving in this environment is highly risky, since current monetary and fiscal policies are deleterious to savers.
Here is the excerpt from the article:
“It’s a fact: low-wage workers don’t save much for retirement. States are aiming to fix that. But here’s a question: is it really a problem that needs to be fixed? How hard should we push the poor to save for retirement?
Bureau of Labor Statistics data show that 75% of workers in the upper half of the salary distribution — those who earn at least $36,000 on a full-time basis — participate in a retirement plan. Among workers in the bottom quarter of the wage distribution, with average salaries of about $24,000 per year, only 25% participate. That’s a big difference.”