Senator Elizabeth Warren added her name to the growing list of legislators who want to expand—not cut—Social Security benefits during a Monday afternoon speech on the Senate floor.
Among working families on the verge of retirement, about a third have no retirement savings of any kind, and another third have total savings that are less than their annual income. Many seniors have seen their housing wealth shrink as well. According to AARP, in 2012, one out of every seven older homeowners was paying down a mortgage that was higher than the value of their house.
And just as they need to rely more than ever on pensions, employers are withdrawing from their traditional role in helping provide a secure retirement. Two decades ago, more than a third of all private sector workers—35 percent—had traditional, defined benefit pensions—pensions that guaranteed a certain monthly payment that retirees knew they could depend on. Today, that number has been cut in half—only 18 percent of private sector workers have defined benefit pensions. Employers have replaced guaranteed retirement income with savings plans, like 401(k) plans, that leave the retiree at the mercy of a market that rises and falls, and, sometimes, at the mercy of dangerous investment products. These plans often fall short of what retirees need, and nearly half of all American workers don’t even have access to those limited plans. This leaves more than 44 million workers without any retirement assistance from their employer.