This Is Why We Should Pay Attention To Bernie Sanders On Social Security

[cal04]

Last edited Thu Oct 15, 2015, 06:34 PM - Edit history (1)

Because your 401(k) really might not be enough, a new report finds.
http://www.huffingtonpost.com/entry/401k-retirement-savings_561fe891e4b050c6c4a4be38

Over the past few decades, American companies have turned away from pensions and toward 401(k) accounts to help their workers save for retirement. That's been a terrible deal, according to a new analysis released Thursday.

Senior citizens on average drew less than $1,000 from their 401(k)s and similar accounts last year, the left-leaning Economic Policy Institute found when it looked at Census data. By comparison, seniors on average received $6,000 from traditional pensions.

The terrifying reminder that many people are headed for their golden years with hardly enough money to afford cat food for dinner comes at a time when politicians -- well, mostly Democrats and Sen. Bernie Sanders (I-Vt.) -- are talking about Social Security expansion again.

(snip)
"There's very little money in these things (401(k)s)," she told HuffPost. "Yes, they're gonna increase, but not enough."

[daleanime]

1. K&R.....

[cascadiance]

2. As I indicated in a response to Alan Grayson's social security post here earlier today...

we need to fix problems with the way early distributions for these 401ks and IRAs are assessed tax penalties.

http://www.democraticunderground.com/?com=view_post&forum=1002&pid=7261257

These rules need changing, as when more and more people get their savings wiped out with the current economy's climate, they are being forced to dip in to their retirement funds (401k and IRAs) as their only assets to live on at times. And they are being socked with an extra 10% penalty that only those who really need to get this money and are least able to afford this tax are having to pay. Something should be done about these penalty taxes. Yes, perhaps we need some other mechanism to have people keep their money in these retirement funds, or move them in to something else better than 401k or IRA for retirement, but perhaps to keep incentives for people to not cash them out by removing this penalty, we replace it instead with a financial INCENTIVE to keep your money in these plans, or find some other program that is perhaps taxed very low ultimately income tax-wise, if they keep it until retirement age, that one can move it to and that one can roll over to at any time, not just when one is unemployed.

Then if people need early distributions, they might pay regular income tax as if it was just income (which it was when they put that money in to these funds), and not taxed extra, which at the time they put it in, they had way of anticipating that we'd have the financial mess that we have now that they worried about the early distribution penalties then.

Yes, we need to help encourage people to put away money for retirement, or fund social security so it can provide sufficient retirement for everyone. But we shouldn't put extra penalties on people forced to use these funds now to survive. Those collecting these penalty funds love the extra dollars, whether it is government, or those in business getting all of those extra maintenance fees over the years, but it is just wrong that those who suffer the most are having to pay that tax. Just one more way the middle tax is getting screwed today.

We should restore people's income and wealth to the point that they don't feel the need to rob their retirement funds just to survive today.

[ms liberty]

3. good point. n/t

[tokenlib]

4. Savings, Pension, and Soc Sec..the three leg stool is broken..

For most people, savings are minimal or gone, pensions are 401krap, and Social Security is all we have left. And the Repukes and Third Way Dems are open to cuts or "reforming entitlements"...Stupid Fuckers....

Bernie is the smartest of the bunch. We have to expand Social Security or there will be a future of misery for millions in this country..

[Sherman A1]

5. Well Said

We should all have the three legs ( Savings and 401k's should be part of that, Pensions and Social Security) to the stool of retirement finances. As we know in far too many a case the Pension Leg has been kicked out from under the worker by corporations either underfunding their pension plans or by changing the rules in mid game. The 401k's have been beaten up by market fluctuations or "other" means in far too many cases. The only thing that is for sure is Social Security at least until the "reformers" have their way. So we must work together to prevent their "reform" from coming reality.