This entry is part of the Director's Hub blog series. You'll hear from our Director, Tom Reeder, about the importance of preserving pension plans and protecting retirement security. Check out Tom's bio to learn more about him.
This week marks National Retirement Security Week, designated by Congress to create awareness about the importance of preparing for retirement. Retirement security is at the heart of PBGC's mission, and this week gives us an opportunity to emphasize the importance of that mission.
I believe in the value of defined benefit pension plans because they provide retirement security in the form of a benefit you can't outlive or outspend. Here at PBGC, we protect the retirement incomes of more than 40 million American workers in defined benefit plans.
At PBGC, we want to make sure more people can count on a secure retirement. One of our purposes under ERISA is to encourage the continuation and maintenance of pension plans. We're doing what we can to help employers keep their defined benefit plans and continue providing the security of lifetime income to their workers and retirees.
Only about half of the American workforce is covered by an employer-sponsored retirement plan, whether a traditional pension or a 401(k)-type plan. The evidence shows that workers are more likely to save for retirement if they have access to a retirement savings plan. For all workers, however, there are tax-preferred ways to prepare for retirement - in a workplace retirement plan, an IRA, or sometimes both. And there's no bad time to start.
I encourage you to take steps to invest in your retirement. It doesn't matter whether you're just starting your work career, at mid-career, or nearing retirement, it's important to have a plan for how you will have the resources you need for the retirement you want.