Let’s do more to help Americans save for retirement. Today, most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401(k)s. That’s why … I will direct the Treasury to create a new way for working Americans to start their own retirement savings: myRA.
— President Barack Obama, State of the Union, January 28, 2014
The most secure retirement requires a three-legged stool that includes Social Security, savings, and pensions. Although Social Security will remain a guaranteed benefit all Americans can rely on, about half of American workers, and 75 percent of part-time workers, lack access to employer-sponsored retirement plans like 401(k)s.
These plans are usually the most effective means of saving for retirement. That’s why President Obama announced in his State of the Union address that he is directing the Department of the Treasury to create “myRA” — a safe, simple, and affordable “starter” retirement savings account that will ultimately help millions of Americans begin to prepare for retirement.
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