Wednesday, September 25, 2013

US Senate Special Committee on Aging Testimony

Read Paula Calimafde's Testimony to the US Senate Special Committee on Aging on 9/25/2013

Brief Excerpt:

"Longer life expectancies are requiring increased retirement savings. Individuals
of all economic levels are far more likely to properly save for their retirement if they
participate in some form of retirement plan. According to research by the American
Society of Pension Professionals and Actuaries (ASPPA), workers are 14 times more
likely to save in a retirement plan offered by their employer than to save through an IRA.

By using payroll deductions, these plans encourage savings because they
automatically remove the money before it ever goes into the employee’s pocket.
The retirement security of our nation’s employees is intended to rest primarily
upon three sources – often referred to as the three legged stool – Social Security, the
voluntary private retirement system and individual savings. As we know, Social Security
is basically a defined benefit system and payments are based upon an annuity type of
framework – i.e., one cannot outlive payments from Social Security. The voluntary
private retirement system is now primarily based on a defined contribution system and
the methods of payments can include annuity, instalments (most often through an IRA),
lump sum or a combination of one or more of these methods."  READ MORE