Millions of Americans are heading toward an inadequately funded retirement. Without adequate income, older adults will lack the resources that enable them to live independently, afford health care, and continue to contribute to society. While Social Security has kept the majority of older adults from sinking into destitution, far too many retirees are having trouble making ends meet.
The statistics are startling:
Even more disconcerting is the fact that the poverty rate among older adults in the U.S. is the fifth highest among major industrialized countries.
The principal reason so many older Americans become poor when they retire is that we rely on a patchwork of private retirement income programs to supplement our Social Security system.
Congress has recognized the critical importance of pensions and retirement savings plans by providing them with preferential tax treatment. For 2018, the tax subsidy for private and public retirement plans is $198.7 billion, one of the largest of the federal tax expenditures.Download File < Back