The Retirement Challenge: What's Wrong with America's System and A Sensible Way to Fix It

The Retirement Challenge, written by two leading experts, proposes changes to America's outdated retirement system to ensure a stable and prosperous retirement for all. These changes include saving more, getting smarter about finances, and trading 401(k) balances for insurance products. Companies need to take a more active role in their workers' retirements, and lawmakers need to amend the tax code, Social Security, and other programs. Despite political divides, policymakers can come together to promote a stable retirement.

Format: Hardback
Length: 272 pages
Publication date: 18 April 2023
Publisher: Oxford University Press Inc

America's retirement system faces significant challenges, as it fails to provide a secure and adequate retirement for millions of individuals. Currently, approximately 40 percent of the federal budget is dedicated to supporting retirees, which is projected to increase to over half in the next decade. This alarming trend jeopardizes the sustainability of the entire system. The system is outdated and no longer reflects the modern reality of America. In the past, company or union pensions provided a decent standard of living for middle-class families in retirement. However, today, private pensions have largely disappeared, Social Security is threatened with insolvency, people are living longer, and healthcare costs continue to rise. As a result, poorer retirees are forced to make difficult choices between buying essential food and medications.

In their book, "The Retirement Challenge," influential former White House economists Martin Neil Baily and Benjamin H. Harris delve into the outdated nature of America's retirement system and propose solutions for improving retirement outcomes. They argue that changes are necessary at the individual, employer, and policymaker levels. Households need to prioritize saving more, becoming more financially literate, and considering trading some of their 401(k) balances for insurance products. Companies should actively engage in their workers' retirement plans and provide more comprehensive benefits. Additionally, lawmakers must amend the tax code, Social Security, and other programs to support a stable retirement.

Despite the political divide in the country, policymakers from both parties can unite around reforms that promote a secure retirement for all. This book demonstrates that these changes do not require a radical overhaul but rather a collaborative effort from families, businesses, and policymakers. By implementing these recommendations, current retirees and future generations can enjoy a more prosperous and fulfilling retirement.

Weight: 682g
Dimension: 163 x 243 x 28 (mm)
ISBN-13: 9780197639276