Obama pushes for mandatory retirement savings plans

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Part of President Obama’s budget proposal would require employers who do not offer a pension plan to provide their employees with a direct-deposit retirement savings plan, modeled after a traditional Individual Retirement Account (IRA).

“The result will be that workers will be automatically enrolled in some form of savings vehicle when they go to work, making it easy for them to save while also allowing them to opt out if their family or individual circumstances make it particularly difficult or unwise to save,” according to the budget plan.

The theory behind the Automatic IRA is based on research that has shown that the key to saving is to make it automatic and simple. An Auto IRA would be put in place for each employee as soon as the employee with no waiting period.

The funds in the Automatic IRA accounts would be invested in a balanced lifetime account. These savings accounts would provide retirement savings in addition to Social Security.

According to the budget proposal, experts anticipate that this program will increase savings participation for low and middle-income workers to around 80 percent.

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By Askmel
Jun 26th 2015 01:11

Theoretically a good idea. However the government's idea is to create a second Ponzi scheme. "Invest" these funds in "special government bonds" and actually spend the money against the current budget.

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By Disgusted
Jun 26th 2015 01:11

What in the world is wrong with the President and the people in Congress? I think they are all on drugs. Mandatory everything these days. What in the world is happening to our freedoms? I am sick to my stomach with all the mandatory ideas. Government needs to get OUT of our lives. We need a FLAT income tax at the Federal level and that is it. We need to finance our defense and the rest needs to be dumped. We are no longer the land of the free and the brave. We are just puppets on a string at the whim of the President and Congress. The Federal government has a hand in everything these days and it needs to butt[***] out.

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By Donny Dittman
to HimUpstairs
Jun 26th 2015 01:11

That's because he is getting kickbacks, my heath care plan has been trashed since Obama care now I'm going to loose my retirement. These were the reasons I joins the union

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