Tuesday, October 4, 2011
Half of California Workers Will Retire at or Near the Poverty Line
Social Services Rachel Swan — Tue, Oct 4, 2011 at 12:03 PM
The future looks grim for young people who've just entered the workforce, according to a new study by the UC Berkeley Center for Labor Research and Education. Apparently, young people are more likely to retire in poverty, owing to the fact that most employers now require their workers to invest in 401K accounts, rather than offering benefit pension plans, which used to guarantee a smooth retirement in the old days. As The Daily Cal reported yesterday, 401K plans are risky, because they won't pay dividends if the market does poorly, or if the individual doesn't invest wisely. As the study's editor Nari Rhee told Daily Cal reporter Christopher Yee, "We don't all have the skills to game the system." Fortunately, Rhee's research might have legs: Los Angeles senator Kevin de Leon is working on a bill that would address some of these issues. Call it a dubious silver lining.
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