Retirement Security

Social security and a defined-benefit pension plan have long been the foundation of a secure retirement. However, use of employer-paid defined pension plans has declined dramatically for non-union workers, in favor of 401(k)s and other investment funds that depend mostly on what employees can save. Union workers are also struggling to retain defined-benefit plans.

According to the Economic Policy Institute, less than 20% of private-sector workers are covered by a traditional pension, and the national savings rate is near zero. So, most Americans will be financially unprepared for their so-called Golden years. Elderly people are also being forced to stay in the workforce later in life – 10% of those aged 65 and older worked in 1985- now it’s 15% and going up.