Network Schools – Wayne Gerseny to https://www.nytimes.com/interactive/2022/04/03/magazine/thomas-piketty-interview u w B l.html?h I’ll smid=url-share the Is for

This boring but important report shows how the top 20% are going to be able to retire comfortably while the lower 80% are going to struggle or work until they drop. This is likely to fuel resentment toward “the elites” and increase pressure on governments to abandon defined benefit pensions in favor of 401Ks which will only exacerbate the problem, especially for non-college graduates who receive government pensions. This will also lead to a situation where households in the lowest 80% will need to find a way to support elders who cannot afford to live on their own putting even more pressure on their ability to make ends meet. Meanwhile, retirees in the top tier will be able to live independently thereby freeing their children of a burden and, in all probability, leaving them some kind of nest egg to sustain their well-being and the well being of their children. Here’e the introduction to the information from EPI, whose research is depicted in readily understandable charts.

Overview Today, many Americans rely on savings in 401(k)-type accounts to supplement Social Security in retirement. This is a pronounced shift from a few decades ago, when many retirees could count on predictable, constant streams of income from traditional pensions (see “Types of retirement plans” box). This chartbook assesses the impact of the shift from…

Source: The State of American Retirement Savings: How the shift to 401(k)s has increased gaps in retirement preparedness based on income, race, ethnicity, education, and marital status