JTF#18  

Introduction 

Saving is a critical component of both retirement security for individuals and the long-term growth of the nation’s economy. Current trends in Social Security, 401(k) plans, and personal saving suggest that individuals will need to save more to ensure that they can enjoy a comfortable retirement. The federal government can also contribute to the nation’s saving by reducing or eliminating its budget deficit. Increased saving by either individuals or the government, of course, means less consumption today. But, by providing more money for investment, additional saving boosts productivity and long-term economic growth...

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Andrew Eschtruth is Associate Director for External Relations at the Center for Retirement Research at Boston College (CRR) and a former federal budget analyst with the U.S. Government Accountability Office. Robert Triest is a Visiting Scholar at the CRR and a Senior Economist and Policy Advisor with the Federal Reserve Bank of Boston.