There are large structural gaps in the employer-sponsored retirement system. I would like delve a bit into the kinds of workers who are left out, and why.
National Retirement Crisis
California Workers' Rights: A Manual of Job Rights, Protections and Remedies
Testimony of Nari Rhee before the U.S. DOL ERISA Advisory Council Hearing. The US private sector employer-sponsored retirement system leaves out many workers, disproportionately impacting Blacks and Latinos. While some states have forged their own path to try to close this coverage gap, these efforts are limited in scope by ERISA preemption. Federal policy action is necessary so that all workers are covered by a plan that effectively prepares them for a financially secure retirement.
Testimony of Nari Rhee before the Health, Employment, Labor and Pensions Subcommittee of the U.S. House Committee on Education and Labor on how the US retirement system can be strengthened and made more inclusive, so that all workers – regardless of race, gender, or class – can have economic security in retirement.
The persistent concentration of financial assets among the wealthiest families, combined with anemic retirement savings among most households, poses a significant economic threat to the retirement security of many working Americans.
A new research brief finds that financial asset inequality among Americans continues to increase, and the inequality is consistent across generations. This wealth inequality, combined with dangerously low retirement savings among most households, poses a significant threat to retirement for working Americans.
The study analyzes workplace retirement plan coverage, retirement account ownership, and household retirement savings as a percentage of income, and estimates the share of working families that meet financial industry recommended benchmarks for retirement savings.
Black workers face particularly severe challenges in building adequate financial wealth–whether through employer sponsored pensions, home equity, or other financial assets–to have enough retirement income in addition to Social Security to guarantee economic independence in old age.