America’s looming retirement crisis – CNBC

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Implementing this plan would require congressional legislation, and we believe it is politically viable and has bipartisan appeal. By leveraging existing infrastructure to create government-backed retirement savings accounts, it wouldn’t impact the budget, raise taxes, or create new bureaucracy.

Importantly, the federal government would guarantee a minimum return of 2 percent, an essentially cost less promise given the high likelihood that the accounts perform significantly better over the long term, and smoothing the threat of market volatility if someone retires at a “bad time.”

The looming retirement crisis may be daunting, but it is not insurmountable. If we find the political will, we can still guarantee most Americans a comfortable retirement at modest cost. If we don’t act, millions will face poverty. Our proposal is practical and effective, and can help set the United States on a sustainable retirement trajectory for years to come.

* This calculation the Organization for Economic Cooperation and Development’s measure of impoverishment and current rates of population growth as a guide.

** This calculation uses data from the U.S. Census Bureau and the University of Minnesota.

America’s looming retirement crisis – CNBC