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The rising cost of employer contributions to employer-sponsored health insurance (ESHI) can slow wage growth and erode the Social Security wage base.  Both these effects were evident in the decades before 2005, as ESHI increased as a share of compensation.  Fortunately, the ratio of ESHI contributions to compensation plateaued after 2005, stabilizing wages and halting…

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At any given time, only about half of U.S. private sector workers are covered by an employer-sponsored retirement plan, and few workers save without one.  The coverage gap, which undermines the retirement security of the nation’s workers, is driven by a lack of coverage among small employers…

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The Inflation Reduction Act signed by President Biden in 2022 somewhat limits how much retirees will pay out of their...

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Larry Fink, in his annual letter to Blackrock investors, once again raised the question about the appropriate retirement age.  Certainly,...

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Social Security helps Black individuals and those with low educational attainment – and therefore low earnings – through its progressive benefit structure.  On the other hand, the nature of Old-Age and Survivors Insurance (OASI) as a life annuity inherently increases expected lifetime benefits for individuals who tend to live longer.  Regardless of how these factors…

A common refrain among retirement researchers is that longer careers are the best way to ensure an adequate retirement.  This refrain is often directed at the workers themselves – “you need to work longer!”  And that message seems to have been getting through.  Since the 1990s, the labor force participation rates of older individuals hav…

The headlines from the 2023 Medicare Trustees Re­port were that the Hospital Insurance (HI) program faces a long-term deficit and will deplete its trust fund reserves in 2031 and that the rest of the Medicare program will require increasing amounts of general revenues. While true, the outlook for program costs is considerably more favorable than…

CRR IN THE NEWS

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Eight states have automatically enrolled hundreds of thousands of workers in retirement savings accounts, all but compelling them to deduct money from their paychecks to spend in their golden years.

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THE ATLANTIC

IBM’s new pension program may not change the game for workers. But it raises big questions about what companies owe their employees, and how existing retirement structures could better serve them.