Heilbroner Center Affiliate Teresa Ghilarducci contributed to a Bipartisan Policy Center report on retirement reform.
Bloomberg | High Earners Are Going to Hate These Retirement Proposals By Suzanne Woolley
June 9, 2016
A 146-page report on how to fix Social Security and more.
For the past two years, a commission made up of 19 high-profile people from the academic, political, business, and investment worlds has been busy devising a bipartisan plan to strengthen the retirement security and personal savings of Americans. The result, a comprehensive 146-page report from the Bipartisan Policy Center packed with ideas, came out today.
A lot of high earners are going to hate it.
One of the report’s many proposals would raise the taxable level of Social Security earnings to $195,000 from the current $118,500 by 2020, part of a broader plan to “renew the promise of a comfortable retirement, across the income spectrum, for current and future generations of Americans.”
The report also includes revamps of everything from 401(k) plans to reverse mortgages to tax credits that encourage savings. And it recommends that any company with at least 50 employees that doesn’t offer a retirement plan meeting certain standards have to enroll workers in a new type of savings plan proposed in the report or in an enhanced myRA that the report envisions.
“Growing inequality has made retirement increasingly available to only a few. We need a federal plan that serves everyone,” one of the commission members, author and New School economist Teresa Ghilarducci, said in a statement. “With 27 states actively pursuing retirement reform, these leaders have made it clear that the political will for change exists.”
The report addresses an urgent need.”
Read the full coverage of the report on Bloomberg.com.