Yahoo Finance takes a look at American’s retirement future and states The 401(k) is worsening retirement inequality. The shift from pensions to 401(k) plans is widening the gap between the haves and have-nots among retirees…
The shift from pensions to 401(k) plans is making retirement inequality much worse—and education is what separates the haves from the have-nots, a new study has found.
College graduates have always been able to get better jobs. What’s new in recent decades is that traditional pensions have all but vanished, replaced by 401(k)-style plans.
In 1980, 38 percent of private sector workers had a pension and 19 percent a 401(k). By last year, according to the U.S. Department of Labor, the numbers had more or less reversed—just 15 percent had a pension and 43 percent a 401(k).
That shift is creating “double disadvantages for the less educated,” wrote University of Kansas sociology professor ChangHwan Kim and U.S. Social Security Administration researcher Christopher Tamborini in a paper presented at the American Sociological Association’s annual conference on Tuesday.
When you combine the GOP push to weaken pensions and promote 401(k)’s that was the hallmark of the Reagan administration with the current plans of Republican Paul Ryan to move Medicare from a guaranteed benefit to a “premium support” model that will shift the costs onto retirees a challenging retirement is made even more so by today’s Republican party. Their refusal to raise the cap on Social Security or negotiate drug prices to lower Medicare costs completes the picture of the GOP as willing to leave seniors out to dry so the wealthy can become even wealthier.
Tell me again why white, working class Americans are supporting the Republican Party?