A recent study from the National Institute on Retirement Security (NIRS) finds while the retirement crisis affects all, it is particularly dire for households of color. Fewer than half of blacks and Latino workers have retirement plans on the job, leaving the vast majority with no retirement savings and more likely to depend on Social Security’s modest benefits.
What’s equally as disturbing as the findings of this study is the position toward Social Security taken by Charles Blahous, research fellow with the Hoover Institution and one of the trustees appointed to oversee Social Security and Medicare.
“A true answer to the problem would mean decreasing our society’s dependence on income transfer programs as a source of retirement income, and increasing the net amount of saving that we do,” he said.
As someone appointed to oversee Social Security, he should know this program remains the foundation of retirement security for almost all Americans as it is the only portable defined benefit retirement plan available to virtually all workers. The problem with Social Security is that alone it doesn’t provide retirees with adequate income as the program was never meant to be the sole source of retirement savings.
More than 65 percent of single and married seniors depended on Social Security for the majority of their income in 2010. We can only expect our reliance on this program to increase as private employers freeze pension plans and cut retirement contributions of all types.
According to the National Academy of Social Insurance, 87 percent of Americans⎯ including 71 percent of Republicans, 97 percent of Democrats, and 86 percent of independents⎯ agree it is critical to preserve Social Security for future generations even if it means increasing taxes paid by wealthier Americans. It’s time for lawmakers and those who help to shape policies to listen to their constituencies who want an opportunity to retire with dignity after a lifetime of hard work and playing by the rules.
PHOTO: Seniors and retirement security advocates rally against cuts to Social Security.