The United States maintained its retirement security ranking at 19th — the same from last year — among 150 nations analyzed by Natixis Global Retirement Index.
For overall retirement security, the U.S. remains behind the majority of countries in Western Europe and Canada, and ahead only of Israel on the list of the top 20 nations.
Natixis measures the quality of life for people in their retirement years based on 20 measures of health, wealth, quality of life, and material well-being that affect people's retirement security.
Read the full Natixis report: 2014 Global Retirement Index.
Col. Charles McGee delivers keynote address at PBGC'S Black History Month Celebration.
On Feb. 11, 2014, PBGC staff witnessed living black history as the agency's Chapter of Blacks in Government (BIG) and the Special Emphasis Program (SEP) hosted the annual Black History Month program. With the national theme in mind, Civil Rights in America, this year's program was widely deemed one of the greatest in PBGC history.
Col. Charles McGee, an original, and now retired, member of the Tuskegee Airmen delivered the keynote address to the agency's staff as they filled the building's training institute in celebration of Black History Month. McGee's career in the legendary all-black 332nd Fighter Group-12th Air Force began in 1944. He is among the first African-American military aviators in the United States Armed forces.
During WWII black pilots were trained at a segregated air base in Tuskegee, Ala., and became known as the Tuskegee Airmen. At the helm of P-39 fighters they flew hundreds of patrol and attack missions, and were also used to escort B-17 and B-24 bombers. The airmen were portrayed in the 2012 motion picture, "Red Tails," produced by "Star Wars" creator George Lucas. The Red Tails nickname came from the ruby-toned tails of the airmen's planes.
In his address, McGee recounted the struggles he and his fellow soldiers faced as African Americans in the Air Force. Throughout World War II, African Americans in a number of U.S. states were subject to Jim Crow laws and all branches of the military were racially segregated. But these obstacles didn't stop McGee and his peers from stepping up and fighting for freedom at home and abroad. He stressed the "Three Ps," which helped to shape his illustrious career as a Tuskegee Airman: persevere, prepare, and perform. "Excellence should always be your goal," McGee said.
On Jan. 31, 1973, McGee retired from the Air Force after 30 years of military service.
PBGC will pay retirement benefits for more than 4,400 current and future retirees of Constar Inc., a plastic container manufacturer based in Trevose, Pa. just outside Philadelphia.
The agency stepped in because the company is selling the majority of its assets in bankruptcy proceedings and the buyer isn't assuming responsibility for the pension plan.
PBGC will pay all pension benefits earned by Constar's retirees up to the legal limit of about $59,320 for a 65-year-old.
Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.
President Barack Obama gives his State of the Union address on Capitol Hill in Washington, Tuesday Jan. 28, 2014. (AP Photo/Charles Dharapak)
In his fifth State of the Union address, President Barack Obama urged Congress to help restore opportunity for Americans, but pledged to take action himself.
In an effort to bolster retirement security, he announced that he will use his executive authority to direct the Department of the Treasury to create "myRA," a starter savings account to help people prepare for retirement.
In case you missed it, here's an excerpt from his speech:
"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 401ks. That's why, tomorrow, I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It's a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in..."
For a more in-depth explanation of "MyRA," read the White House issued FACT SHEET: Opportunity for All: Securing a Dignified Retirement for All Americans.
New research from the National Institute on Retirement Security (NIRS) examines racial disparities in retirement readiness among working-age Americans and households.
The new report calculates the severity of the U.S. retirement security racial divide. The analysis finds that every racial group faces significant risks, but people of color face particularly severe challenges in preparing for retirement. Americans of color are significantly less likely than whites to have an employer-sponsored retirement plan or an individual retirement account (IRA), which substantially drives down the level of retirement savings.
Some of the key findings include:
1. Workers of color, in particular Latinos, are significantly less likely than White workers to be covered by an employer-sponsored retirement plan—whether a 401(k) or defined benefit (DB) pension.
2. Households of color are far less likely to have dedicated retirement savings than White households of the same age. At the same time, coverage appears to be positively associated with the existence of dedicated household retirement savings in both groups.
3. Households of color have substantially lower retirement savings than White households, even after controlling for age and income.
Race and Retirement Insecurity in the United States serves as a companion to NIRS' July 2013 study, The Retirement Savings Crisis: Is It Worse Than We Think?, which documented a significant retirement savings gap among working-age households in the U.S.
Read the full NIRS report, Race and Retirement Insecurity in the United States.
The retirement crisis is real and growing as millions of workers have less access to employer-sponsored plans and are saving less money. As a result, the opportunity of living a secure and comfortable retirement among many workers is gradually decreasing.
This crisis has not gone unnoticed. On Monday, Senator Elizabeth Warren (D-MA) spoke on the Senate floor about the need to address issues of retirement and social security. Throughout the speech, Warren reaffirmed the fact that the nation does face a retirement crisis, contrary to the belief of the Washington Post's recent editorial. Warren also called on Congress to strengthen Social Security rather than to cut benefits that many retirees depend on for their retirement.
As Warren said, "the conversation about retirement and Social Security benefits is not just a conversation about math. At its core, this is a conversation about our values."
Read the full text of the speech.