Should the Government Be Involved With Your Retirement Account?
Why don't people save for retirement? There are many different answers all which could be debated. Regardless of why, the reality is that we are heading towards a full-blown retirement crisis as people are just not preparing for their golden years. It becomes even more apparent as the much relied upon pension plan has gone by the wayside. Going forward you will see less and less of people having the luxury of a pension plan. Further, those currently on a pension plan are always in danger of their pension plan getting into trouble. It is no secret that pension plans as a whole are underfunded and have liabilities that they cannot cover.
It begs the question. Should the Government step in and socialize retirement or should the government not intervene and let the scenario play out?
Socialization Not Confiscation
Dr. Teresa Ghilarducci, an economics professor at the New School for Social Research in New York, is a big advocate of the Government getting involved. She wants the Government to put together a forced savings plan on every worker creating a second form of income for each worker later in life. It would be a social security 2 type set-up.
In fact, she went to Washington and spoke with a handful of politicians about her proposals. This occurred in October 2008 right when the financial crisis occurred. The media got wind of the meeting and it took no time at all for the rumor mill to get started. It was rumored that she was advocating that Government not only socialize retirement, in addition, it was rumored that she advocates for the Government to take over all retirement accounts and place the assets into government based programs.
I interviewed Dr. Ghilarducci on my radio show and yes she is for socialization of retirement and no never mentioned confiscation of retirement accounts.
I think that this falls on each individual and their responsibility to plan for their own retirement and let the chips fall where they may. Can you imagine how badly another government based retirement plan could turn out? All you have to do is look at the underfunded social security system for that answer. Golden rule of Washington - never give politicians access to money that is put aside for future spending.