What could go wrong...

Three-Quarters of Americans Favor State-Run Retirement Plans

Most working Americans say they would participate in a state-facilitated retirement program if offered, NIRS’ latest brief finds

Working Americans are wanting state-facilitated retirement programs to help them prepare for their future, finds new research today from the National Institute on Retirement Security (NIRS).

According to the findings from the organization’s new brief, “Americans’ Views of State-Facilitated Retirement Programs,” 77% agree that a state-run program is a good idea. This view is particularly backed by Millennials, who showed the highest support among all generations (79%).

Moreover, 82% of Americans said they would participate in state-facilitated retirement programs, a rise from 75% just four years prior in 2020. Among the key features that were highly favorable to respondents included higher returns (87%) and lower fees (86%).

NIRS’ research finds that such sentiment is held across all party lines, with 86% of Democrats, 74% of Republicans, and 71% of Independents showing strong support for state-wide retirement programs.

The number of government-facilitated programs has risen significantly in recent years, as federal and state regulators methodize retirement strategies for workers without employer-sponsored retirement plans. According to the Georgetown University Center for Retirement Initiatives (CRI), about half of the private-sector workforce, or 57 million employees, are without any access to an employer-sponsored retirement savings plan.

“It’s so encouraging that nearly every state is examining options for expanding access to retirement plans for workers lacking plans at their job,” said Dan Doonan, NIRS executive director and report co-author. “And it is equally encouraging that Americans overwhelmingly agree that the state plans are a good idea and that they would participate.”

Ideally, more plan sponsors would offer retirement benefits as a response to the increase in state-run programs, Doonan has stated in the past. New legislation offered by SECURE 2.0 should also incline employers to offer plans, as it eases the complex administrative process linked to retirement plan setup, he added.

“It also will be interesting to see if the state programs spur growth in 401(k) plan offerings, especially given that SECURE 2.0 provisions will make it easier for small businesses to offer retirement plans,” Doonan said. “Overall, actions at the federal level coupled with the state-facilitated retirement programs are steps in the right direction toward solving the alarming retirement savings shortfall facing most working Americans.”

https://401kspecialistmag.com/...1d2846bb0362e88b5317

That's because nobody is saving.



They just expect everybody else to pay for them; absolving themselves of any personal responsibility (much like they live their lives now).

quote:

Originally posted by bcereuss:
That's because nobody is saving.

Exactly. In many states were already paying the healthcare of every random person (passed out) on the street. Now they want retirement plans too.

Great, the uneducated masses want disappearing retirement plans.

Is it really that crazy of an idea?

My kids’ 529 plans run by Utah seem to be doing ok. You pick from a variety mutual funds they offer and I picked the Vanguard S&P 500 Fund. If you want to take advantage of the tax benefits a 529 investment plan has to offer, you have no choice but to use a state run plan. They have about 40% more money for school than they would have had if I not for the tax benefits.

States run retirement plans as well, think teachers and all the other state employees. I have’t heard or read any complaints about those.

quote:

uneducated masses

Exactly it. They don't know what it is they want and the detriment of it.

I wonder what the reply would be to the second question...."Would you contribute YOUR money to this plan?".

quote:

My kids’ 529 plans run by Utah seem to be doing ok. You pick from a variety mutual funds they offer and I picked the Vanguard S&P 500 Fund. If you want to take advantage of the tax benefits a 529 investment plan has to offer, you have no choice but to use a state run plan. They have about 40% more money for school than they would have had if I not for the tax benefits.

Missouri's 529 plan is also a good one.

That's not my concern. My concern is that were government steps in, voluntary and private relationships are gradually pushed out. I'm not as worried by the States as I am by the Feds. The federal government took over education lending, at first gradually, and then completely. Now, taxpayers will be on the hook.
The federal government took over health care, at first gradually, through medicare and medicaid, and then almost completely through the regulations imposed by Obamacare.

The one big pot of money and individual choice and control left is your 401(k) or other retirement plan...

I don’t think the state is actually running the 529. My kids 529 via schwab is a Missouri plan because it’s the most generous and flexible. The state is just the sponsor. Within that schwab 529 account I can invest in all kinds of schwab funds. Schwab is running them. Not the state.

I just got my social security statement. I will be 50 this year and have been working since I was 15. Me and my employers combined have live out in over 300k in social security taxes. I know for a fact me and my employers 401k contributions are way under that and my IRA values are are way ahead.

State pension people can invest in the market etc but socials security can’t. It’s doomed to failure

Most Americans can’t save because of the rocket scientist in the White House. I can only save because I work about 20 hours OT every week. It would be tough on 40 hours.

I’ve got an idea: How about the government stops trying to invent new ways to get my money. Those bastards have been drooling over all the private retirement funds for years. Give them access and they’ll blow through it in a month.

That is absolutely crazy. Learn about investments. I have managed mine for decades without one business course.

No fucking way I’m giving my state government control of my retirement.

quote:

States run retirement plans as well, think teachers and all the other state employees. I have’t heard or read any complaints about those.

^^^^^^^^^^^
State run retirement plans steadily deliver subpar performance. I paid my children's college costs by selecting mutual funds. They did much better than the state run plans. Texas may be different.

75%of Americans are already participating in a state run retirement plan… it’s called Social Security…

Gee, I wonder how that program’s solvency is doing?

I’m referring to state with a capital S

The state of Illinois is $142 billion underfunded for their state employee pensions. Tell me they can manage money.

Only one comment on the Federal Retirement Plan-AKA Social Security???

quote:

Originally posted by 400m:
The state of Illinois is $142 billion underfunded for their state employee pensions. Tell me they can manage money.

And that is why I believe that the states will petition the federal government to seize all private retirement funds to allow public retirement funds to be rescued. I too think the feds are figuratively drooling at the prospect of all the money held in private retirement accounts.

My fear is it will happen with no announcement, and we will wake up one day to the federal takeover with no recourse.

I am always skeptical of "polls" pertaining to say one thing or another. There is always some interested party funding the poll. While I understand a few school districts across the nation offer personal finance classes, I do not recall seeing any mention that any school district "requires" them, hence it is likely the masses do not even understand the differences between retirement plans. As many of you who invest and manage your retirement and other accounts, it requires motivation to learn the basics to understand the financial markets. I think many people simply lack the motivation to do the work. Hence, it is easier to let the federal government do it. As others have noted, Social Security, state pension plans, etc. are poor performers which would be bankrupt if it were not for government's ability to tax and spend.

Yeah, they've done an excellent job with SSI. Just turn everything over to them because you're too stupid, lazy and incompetent to do it yourself.