Chief executive officers of the nation’s largest companies can look forward to a very comfortable retirement while most working Americans have little or no savings for their old age. The 100 largest retirement funds of CEOs are worth a total of $4.9 billion, or equal to the entire retirement savings of 41% of America's families, according to a new report released this week by the Center for Effective Government and the Institute for Policy Studies.
Let's just reiterate that headline to make sure it sinks in: The top 100 CEOs, you know, fewer people than were on the train I took to work this morning, have more in retirement savings than 50 million families—41% of the families in the United States, or 116 million people. Anyone else think that seems kind of excessive?
When you pay a financial adviser to help you invest your hard-earned retirement savings, you would assume that they would be required, by law, to have your best interests at heart. But because of loopholes in the rules, advisers can get away with not only putting their own financial interests above that of their clients, but also allows them to take incentives from Wall Street firms to recommend investments that drain funds from ordinary Americans’ retirement accounts through hidden fees and lower returns. The White House Council of Economic Advisers says this costs us $17 billion a year.
The Obama administration today took the first step to close a loophole in the rules that govern Wall Street brokers and financial firms that provide retirement investment advice. That loophole can drain away thousands, or even tens of thousands, of dollars of hard-earned savings from a single retirement account.
There is a loophole in the rules that govern Wall Street brokers and financial firms that provide retirement investment advice that can drain away thousands, or even tens of thousands, of dollars of hard-earned savings from a single retirement account. Today, a coalition of senior, union and consumer groups launched a new website—SaveOurRetirement.org—to mobilize support to close the “Retirement Advice Loophole” through a new rule the U.S. Department of Labor is trying to adopt.
A new report from the National Academy of Social Insurance, Americans Make Hard Choices on Social Security, takes a comprehensive look at public attitudes about the nation's retirement security program and finds broad support both for the program and for commonsense solutions to strengthen and expand the program in future years.
Most all of us know someone—or may even be someone—who worries about having enough economic strength through savings, pensions, Social Security, health insurance and other resources to retire. When the paychecks stop coming in we don’t want to rely on help from our families, drastic cuts in spending or be forced back to work.
In our new regular weekly feature, we'll be taking a look at the winners and losers of the week in the struggle for the rights of working families. The winner will be the person or organization that goes above and beyond to expand or protect the rights of working families, while the loser will be whoever went above and beyond to limit or deny those rights.