MyRA proposal a modest step toward necessity
|By the Telegraph Herald Editorial Board|
where we stand The myRA program announced last week by
How about gross savings as a percentage of gross domestic product? Nope. According to the
Americans save less than 5 percent of their disposable income, about the same as
The fact is they are not ready to retire.
This has been studied and researched time and again. For example, the
Not even close.
People with incomes above
Americans cannot rely only on
Getting more Americans into the habit of saving and investing is the goal of a new program
If a saving and retirement program were a bicycle, myRA could be compared to a single-speed model with training wheels. It's a low- investment, low-balance, low-risk program to help people get acquainted and comfortable with setting aside money for retirement. Participants, who can invest through payroll deduction, have no investment choices to make. The money is put into safe, low- interest securities. Participants won't earn a lot, but they won't lose money, either.
Once an account reaches
There are a few other details to the myRA program, details that might not fit a bicycle analogy. However, the message behind the program is that the road to retirement is long, and success will come to those who start pedaling early in their working lives.
Let's hope that the myRA program helps more Americans get started.
Editorials reflect the consensus of the Telegraph Herald Editorial Board.
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