A new study shows how bad the retirement security problem in the U.S. has become. Nearly two-thirds of Americans do not contribute, or have contributions made on their behalf, to any type of retirement account, according to a working report from the U.S. Census Bureau.
Data from 2012 revealed that only 14 percent of employers offer retirement plans to their workers. The figure was previously believed to be 40 percent.
“This report reaffirms the importance of collective bargaining,” said IAM International President Bob Martinez. “Companies aren’t out there willingly offering up pension and 401(k) contributions, they must be bargained for. And as we all know, the best way to bargain is with a union.”
The frightening numbers on American retirement savings solidifies the importance of protecting Social Security and Medicare. Some in Washington, DC would like to see Medicare turned into a voucher system, Social Security privatized and the retirement age raised. These changes would all but guarantee the majority of Americans will have to work until they die or on their death bed.
“Protecting Social Security and Medicare has never been more important,” said Martinez. “As this study shows, for two-thirds of Americans these programs will be the only thing there for them when they are no longer able to work.”